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New Deal for Unemployed People in Scotland: April 1999

29/04/1999

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New Deal for Unemployed People in Scotland
( 29 April 1999)
The Scottish Office Education and Industry Department have today published a News Release giving the latest figures on the number of people participating in New Deal in Scotland. This News Release includes statistics for the New Deal for the Young Unemployed (New Deal 18-24) and the New Deal for the Long-term Unemployed (New Deal 25+).
Summary information up to the end of February is given on the numbers of people at different stages of both New Deal processes in Scotland and the routes that they have followed. The New Deal for the Young Unemployed was introduced nationally on 6 April 1998 (it had already been operating since 5 January 1998 in the Tayside Pathfinder area) - eleven months of data (fourteen months for Tayside) are therefore included in this News Release. The New Deal for the Long-term Unemployed was launched throughout the country on 29 June 1998- eight months of data are therefore shown here.
More detailed tables, replicating these results for each of the New Deal Units of Delivery - the areas covered by the local partnerships delivering New Deal - are also available.
The information in these News Releases will be supplemented by the New Deal evaluation results. These will generally be published as Employment Service Research Reports; key results will be summarised from time to time in articles in Labour Market Trends and Scottish Office statistical bulletins.
A fuller description of the sources for the statistics in this News Release is given in an article in the April edition of Labour Market Trends.
The main findings are:-
New Deal for the Young Unemployed (New Deal 18-24)
  • In February, 1,700 joined the New Deal 18-24 in Scotland, bringing the total number of starts so far to 26,300. This compares to figures of 16,000 and 249,200 across Great Britain. Overall, the results for Scotland are broadly in line with those for Great Britain although there are some differences, such as in the relative proportions going into each of the options.
  • 11,200 participants left the New Deal 18-24 programme up until the end of February in Scotland, leaving 15,000 participating at the end of February. Over three quarters of participants at the end of February were male and an eighth of participants were people with disabilities.
  • Up to the end of February, 6,700 young people in Scotland had gone into sustained jobs from New Deal 18-24, of which 5,100 were unsubsidised jobs. A further 2,600 had gone into employment lasting less than 13 weeks - 2,300 of these were unsubsidised jobs.
  • Of the 11,200 who had left New Deal 18-24 in Scotland, 5,100 (or 45%) had entered sustained unsubsidised jobs, 4,400 from the Gateway, 400 from an option and 300 from the Follow-Through. 1,700 (or 15%) had transferred to other benefits, 1,200 (or 11%) had left for other known reasons and 3,200 (or 29%) for unknown reasons.
  • Of the 15,000 participants in New Deal 18-24 at the end of February in Scotland, the majority (8,300 or 55%) were on the New Deal Gateway and most of the remainder on one or other of the options. The largest proportion of those on options were on the full-time education and training option although relatively fewer than in Great Britain as a whole (40% as compared to 48%).
  • At the end of February, there were 135,600 people on New Deal 18-24 in Great Britain, of whom 24% were in London & South East. Scotland accounted for 11% of all participants in Great Britain.
  • Of those in Scotland who had their first New Deal 18-24 interview in April 1998, 58% had left New Deal by the end of February 1999, almost a half of those to go into unsubsidised jobs. 25% were on a New Deal option, 5% were still on the Gateway and 12% had reached the Follow-Through.
New Deal for the Long-term Unemployed (New Deal 25+)
  • In February, 1,500 joined the New Deal 25+ in Scotland, bringing the total number of starts so far to 9,400. This compares to figures of 12,600 and 104,800 across Great Britain.
  • Of these 9,400 individuals in Scotland, 30% joined on crossing the 2-year unemployment threshold; 61% from subsequent Restart flows, and the remaining 9% from early entry groups.
  • 14% of entrants to New Deal 25+ in Scotland have been aged between 25-29 and 30% have been older clients aged 50 and over.
  • 2,600 participants left the New Deal 25+ programme up until the end of February in Scotland, leaving 6,800 participating at the end of February. Around 86% of participants at the end of February were male and almost a fifth of participants were people with disabilities.
  • Up to the end of February, 465 people in Scotland had started unsubsidised jobs and 275 subsidised jobs. Together these represented 24% of all leavers from the Advisory Process. 34% of all leavers from the Advisory Process return to their regular pattern of jobseeker activity ie they remain on JSA without taking up a New Deal opportunity.
  • Of these 6,800 participants in New Deal 25+ at the end of February 1999 in Scotland, the vast majority (6,200) were on the Advisory Process, the remainder in subsidised employment, education and training opportunities or Training for Work.
TABLES
The tables show figures up to the end of February 1999 for Scotland and, where appropriate, equivalent figures for Great Britain.
New Deal for the Young Unemployed (New Deal 18-24)
Table A1: New Deal 18-24 summary figures - the numbers entering and leaving New Deal over the fourteen months January 1998 to February 1999.
Table A2: Numbers participating in New Deal 18-24 at the end of February 1999 - showing where those participating at the end of February were in the New Deal process.
Table A3: Numbers leaving the New Deal 18-24 Gateway by immediate destination - showing the breakdown of the number of people leaving the Gateway over the fourteen months January 1998 to February 1999 by their immediate destination.
Table A4: Number of people on New Deal 18-24 by region for Great Britain and by Unit of Delivery for Scotland at the end of February 1999.
Table A5: Position at end of each month of those who had their first New Deal 18-24 interview in April 1998 - tracking the progress of the first 'national' cohort of New Deal starters.
Table A6: Immediate destinations on leaving New Deal 18-24, by stage of New Deal process reached - detailing the destinations of leavers over the fourteen months January 1998 to February 1999 according to where they were in the New Deal process at the time they left .
Table A7: Numbers into employment from New Deal 18-24 - splitting both subsidised and unsubsidised jobs over the thirteen months January 1998 to February 1999 into those that are sustained and those lasting less than 13 weeks.
New Deal for the Long-term Unemployed (New Deal 25+)
Table B1: New Deal 25+ summary figures - the numbers entering and leaving New Deal over the eight months July to February 1999.
Table B2: Numbers participating in New Deal 25+ at the end of February 1999 - showing where those participating at the end of February were in the New Deal process.
Table B3: Numbers entering New Deal 25+ - showing the breakdown of the number of people entering the New Deal over the eight months July to February 1999 by their eligibility.
Table B4: Numbers leaving the New Deal 25+ Advisory Interview Process by destination - showing the breakdown of the number of people leaving the Advisory Process over the eight months July to February 1999 by their destination.
Table B5: Number of people on New Deal 25+ by region for Great Britain and by Unit of Delivery for Scotland at the end of February 1999.
CHARTS
The charts illustrate certain key summary details for Scotland.
Chart 1: Numbers on New Deal at the end of each month - showing a breakdown by sex.
Chart 2: Position of those on New Deal 18-24 at the end of February 1999 - showing the relative split between the Gateway and Options.
Chart 3: Numbers entering New Deal 25+ each month - including a breakdown of the participants' eligibility category.
Chart 4: Immediate destinations of leavers from the New Deal 18-24 Gateway - detailing those going into unsubsidised employment, New Deal Options or elsewhere.
Chart 5: Entries to sustained jobs from New Deal 18-24 and New Deal 25+ - subsidised and unsubsidised jobs are shown.
Chart 6: Position at end of each month of those who had their first New Deal 18-24 interview in April.
NOTES FOR NEWS EDITORS
10 Introduction: The statistics in this News Release cover participants in the New Deal for the Young Unemployed and the Long-Term Unemployed in Great Britain. The New Deal for the Young Unemployed is aimed at those aged 18-24 who have been claiming Jobseekers Allowance (JSA) for at least 6 months. A fuller description of the New Deal process was included in an article in the May 1998 issue of Labour Market Trends ('New Deal and its effect on labour market statistics'). The New Deal for the Long-Term Unemployed is aimed at those aged 25+ who have been claiming Jobseekers Allowance (JSA) for at least 2 years.
  • New Deal for Young People:
2. Eligibility : Those aged 18-24 who have been claiming JSA continuously for 6 months become eligible for New Deal when they reach the 6-month threshold. At that point, their participation is mandatory. Those who have already been unemployed for 6 months are required to enter New Deal when they reach their next 6-monthly Restart interview date, but are entitled to request immediate entry before then. There are eleven additional groups who are entitled to entry to New Deal before reaching the 6-month point (see below).
3. Outline of process : Those joining New Deal first enter a Gateway period lasting up to 4 months, during which Employment Service (ES) and their partners will work with them to improve their employability, and to find unsubsidised jobs for as many as possible. Those who do not find a job will then move onto one of four options:
  • a period of subsidised employment, lasting 6 months (including, from June, support to become self-employed)
  • a course of full-time education/training
  • a job with an Environment Task Force
  • a job in the Voluntary Sector
4. As far as possible, young people will be offered a choice of options. They do not however have the option of remaining on JSA.
5. If the client reaches the end of their option, and still has not obtained a job, they will normally re-claim JSA, and will enter a Follow-Through period. During this, they will remain on JSA, but receive intensive help to find a job.
  • New Deal for Long-Term Unemployed People:
6. Eligibility : Those aged 25+ who have been claiming JSA continuously for 2 years become eligible for New Deal when they reach the 2 year threshold. At that point, their participation is mandatory. Those who have already been unemployed for 2 years are required to enter New Deal when they reach their next annual Restart interview date, but are entitled to request immediate entry before then. There are a number of additional groups who are entitled to entry to New Deal before reaching the 2 year point (see below).
7. Outline of process : Those joining New Deal first enter an Advisory Interview Process lasting between 3-6 months with an average of 7 interviews during which Employment Service (ES) and their partners will work with them to improve their employability, and to find unsubsidised jobs for as many as possible. Those who do not find a job may transfer to other provision or move onto one of the two New Deal specific measures:
  • a period of subsidised employment, lasting 6 months
  • a course of full-time education/training lasting up to a year whilst remaining on JSA
8. If the client reaches the end of their Advisory Interview Process without taking up an opportunity, they may return to their normal jobseeker activity and will re-enter at their next full year Restart Interview.
9. A further series of interviews are available as part of the Follow-Through for those returning from subsidised/unsubsidised employment or existing training provision within 13 weeks of leaving JSA/completing the provision, and those completing Education and Training Opportunities.
10. Source of the data : The original source of most of the data in this Statistical First Release is the Labour Market System (LMS) installed in Employment Service's local offices. This is an IT system which is used to facilitate the interface with ES clients. It maintains a basic client record; allows the preferred occupations stated by clients to be matched against suitable vacancies; records actions such as interviews, referrals to training opportunities, placings in jobs etc. In particular, it has been significantly enhanced to record New Deal-specific actions, such as starts on options.
11. The relevant data are extracted from the main system each month and added to a New Deal Evaluation Database maintained by ES's Research and Development Division. This Evaluation Database also incorporates data from other sources: data on claimant unemployment extracted from the Joint Unemployment and Vacancies Operating System (JUVOS) maintained by the Office for National Statistics, which is the primary source of published statistics on claimant unemployment, and further information on subsidised jobs taken from the appropriate ES payments system.
12. Definitions: the following notes explain the definitions underlying the data presented here, except where these are self-explanatory - e.g. gender.
13. Date of entry: an individual is generally deemed as participating in the New Deal from the date they are invited to interview. In the case of those seeking early entry, this date may effectively be the same as the date of that interview. In practice, the date on which LMS records the individual as joining New Deal can in some cases be the date of the interview rather than the date of the invitation, but the difference is generally small.
14. Leaving New Deal: an individual leaves New Deal if:
  • they terminate their JSA claim while on the Gateway/Advisory Interview Process, either because they have obtained an unsubsidised job, or for other reasons;
  • they complete their option, and do not begin a new JSA claim, either because they have obtained a job, or for other reasons;
  • they leave their option early, and do not seek to re-claim JSA - again, either because they have found a job or for other reasons;
  • for long-term unemployed, they complete the mandatory interview process and return to a normal jobseeker activity
15. Destinations on leaving Gateway/Advisory Interview Process: individuals are shown as having left to go into employment if either: they are recorded on LMS as having been placed in a job, and leaving New Deal; or they are shown as having signed off for some other reason, and the reason for termination of their JSA claim recorded on JUVOS is to go into a job. These figures will understate to an extent the proportion going into unsubsidised jobs, for two reasons. Firstly, for a proportion (mainly of the more recent leavers), there is no matching JUVOS off-flow record. Over time, more such matches will be identified, and the figures revised as necessary. Secondly, a significant proportion of those whose JSA claim is terminated simply fail to sign on, without returning their JSA form, so that no reason for termination is collected. Previous research suggests that overall, the proportion of those with an unstated destination who have started work is only slightly lower that the proportion among those who do give a destination.
16. Where a person leaves and subsequently enters a new claim for JSA within 13 weeks, they will rejoin at the point they left with the interruption not counting towards their period of support. In the tables in this News Release, such people are treated as having been continuously on the Gateway/Advisory Interview Process.
17. Other benefits' refers to those who have moved from JSA to a more appropriate benefit, for example Incapacity Benefit or Income Support.
18. 'Other' consists of those who are not recorded on LMS as either going into an unsubsidised job, or transferring to another benefit, and who are recorded on JUVOS as either: gone abroad, started education or training; 'other reason'.
19. The 'not known' category includes both those for whom no JUVOS off-flow information has been matched, plus those with a leaving code of: 'not known'; ceased claiming; failed to sign. It should be noted that these cases are 'not known' as far as the statistical reporting systems are concerned - in some cases, staff in Jobcentres may know the reason for the individual ceasing to claim, but this is not captured systematically by LMS. For young people, a separate survey has been conducted of these cases, asking New Deal Personal Advisers what they know about their destinations. The results of this are reported in a separate DfEE News Release issued at the same time as this one.
20. Starts on options are taken primarily from LMS. In the case of the subsidised employment option, this is confirmed when there is a record of a subsidy actually being paid to the employer.
21. Destinations on leaving after starting an option: These figures are based on a combination of information: the returns which option providers make when a client leaves the option, stating their immediate destination; ES placings and other destinations recorded on LMS; JSA termination codes.
22. People with a disability: this entry is based on the individual's own assessment and signed confirmation given to ES staff, that the person believes themselves to be disabled in accordance with the Disability Discrimination Act definition. That is, they have a physical or mental impairment which has a substantial and long-term effect on their ability to carry out normal day to day activities. (Note that this will not necessarily be consistent with sources such as the Labour Force Survey, which rely entirely on self-assessment, without further discussion or endorsement.)
23. It is not the same as the early eligibility criterion: people seeking early entry on the grounds of having a disability must be assessed as having such; but some who have a disability will qualify for New Deal entry for other reasons (primarily through length of unemployment claim).
24.Ethnic origin: ES began recording ethnic origin from January, but it was not recorded on IT systems until April. The backlog of information for January to March 1998 starts has now been recorded on the IT systems, although the data are less complete for those who joined in January to march and left relatively quickly. For young people, the effect of this is to understate the number of leavers from ethnic minority groups, particularly in January to March.
25. The basis of the data is self-assessment by the individual client. The categories are the same as in most statistical sources, except that there is a specific option for the client to record 'preferred not to say'. This option is chosen by around 3% of clients in Great Britain.
26. Although the NVQ equivalences are standard, one should be cautious in comparing these data with other sources such as the Labour Force Survey, because of differences in the methods of data collection.
27. Qualifications data are currently available for only a proportion of starts.
28.Cohort table: This is defined by tracking all those having their first interview in April (Table A5). Individuals are tracked at the end of each month, subject to two provisos:
  • where a participant leaves Gateway, for example to take up a job, and then later re-joins New Deal, they are treated as having been continually on New Deal;
  • the participant's destination on leaving is their immediate destination - for some, their destination at the end of the month will be different.
29. Region: This News Release includes a summary breakdown for Scotland, Wales and the regions of England. The regions are the ES regions, rather than Government Office regions. The ES regions are: Scotland , Wales, London and the South East; East Midlands and Eastern; West Midlands; South West; Yorkshire and the Humber; Northern; North West.
30.Unit of Delivery: New Deal is being delivered by 142 local partnerships. The areas covered by these are known as Units of Delivery. These areas are defined mostly in terms of ES Districts and Jobcentre areas. The 12 Pathfinder areas are: Black Country, Cornwall, Cumbria, Eastbourne, Lambeth, Newcastle, Sheffield & Rotherham, South Derbyshire, Stevenage, Tayside, West Wales & Swansea, Wirral.
31.Separate News Releases are being released by the Department for Education and Employment and Welsh Office.
Further Information
32. More detailed information on the New Deal can be found on the Internet. The address of the New Deal website is: www.newdeal.gov.uk
Enquiries
33. Public enquiries (non-media) about the information contained in this News Release should be addressed to
John Taylor,
Education Statistics Qualifications and Lifelong Learning Branch,
The Scottish Office Education and Industry Department,
Area 1-A,
Victoria Quay,
Edinburgh,
EH6 6QQ.
Telephone 0131-244-0304
or email: john.taylor@scotland.gov.uk
34. Media enquiries about the information in this News Release should be addressed to:
Tony McLaughlin 0131-244-2542
News Release ***** 29 April 1999
Criteria for early entry to New Deal
New Deal for Young Unemployed
People with Disabilities
Literacy/numeracy difficulties
English (/Welsh/Gaelic) as Second Language need
Ex-regular member of armed forces
Ex-offender
Lone parent
Labour market returnerSomebody who is now actively seeking work, not having participated in the labour market for several years
Large-scale redundancy victim
Local authority care
'28-day rule'Those who would have qualified as having claimed JSA for 6 months or more, other than for short breaks totalling not more than 28 days
Other early entrantsThose judged by ES to be at a severe disadvantage in their search for work - for example, homeless people or people with drink or drug problems
New Deal for Long-Term Unemployed
People who have been claiming JSA continuously for a year or more:
People with Disabilities
Literacy/numeracy difficulties
English (/Welsh/Gaelic) as Second Language need
Ex-offender
Other early entrantsThose judged by ES to be at a severe disadvantage in their search for work - for example, homeless people or people with drink or drug problems
Those claiming other benefitsThose who would have qualified as having claimed JSA for 2 years or more, other than for one or more periods of time spent receiving Invalid Care Allowance, Maternity Allowance, or a range of other allowances
'linking rule'Those who would have qualified as having claimed JSA for 2 years or more, other than for one or more periods of not more than 12 weeks each when not claiming

? 1999
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