Unemployment down but more claiming benefit
THERE has been a drop in the number of people out of work, to the lowest point since 2011, however below-inflation increases in earnings mean that the number of people claiming supplementary benefit is rising.
Employment & Social Security president Michelle Le Clerc, pictured, said changes to the way unemployment is recorded had given her committee a greater indication of long-term trends.
‘Quarter one data for 2018 showed that the average number of job seekers without work was 297, which was a decrease of 22% compared with the same period in 2017,’ she said in the States.
‘If trends continue as they are, then this year is likely to see the lowest unemployment figures since 2011, which in turn continues to give us one of the lowest unemployment rates in the world.
‘Unfortunately, there is a long-term increase in the number of people who undertake some work, but still require additional financial support through supplementary benefit, soon to be income support. Statistics show that during 2017, median earnings increases did not match inflation.
‘We are monitoring the figures to establish whether a trend will develop if median earnings do not exceed inflation during 2018, particularly for low earners.’
She said that conversations had been started with ‘key stakeholders’ on raising the minimum wage and that the public consultation will be asked subsequently.
‘Last year, we pushed for more engagement and received more responses than ever before.
‘The responses last year were enlightening and allowed us to conclude that it was appropriate to propose a significant increase.
‘Around the time the proposals are debated each year, there tends to be some criticism, which is to be expected, as we aren’t going to please everyone. But it’s concerning that more often than not, criticism comes from those who did not take part in the consultation, despite being directly offered the chance to participate.
‘Last year, the committee was minded to propose an adult rate of £7.50 per hour, but following the results of the consultation, we proposed a rate of £7.75 per hour.
‘This year, public opinion will be even more important, because we will be responding to Deputy Roffey’s amendment which requires us to indicate a direction of travel for minimum wage increases in the years to come.’
The final decision will also be informed by the Scrutiny Management Committee’s report on in-work poverty, she said, which is yet to be published.
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