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NEW DEAL FOR UNEMPLOYED PEOPLE IN SCOTLAND: STATISTICS TO END DECEMBER 2003

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This News Release, the latest in a quarterly series, provides summary information to the end of December 2003 on the numbers of people at different stages of New Deal processes in Scotland. This information includes the different routes that they have followed as well as equivalent data for Great Britain.

Due to changes in Publication practices at Department for Work and Pensions, the publication of New Deal for Unemployed People and New Deal for Lone Parent statistics will, in future, be published at the same time, in one publication. This publication will be published on the third Wednesday in June, September, December and March.

Next release in this series: 16 June 2004

Employers

• The number of employers signed up to New Deal by the end of February 2004 was 17,461 in Scotland. There were 108,744 employers signed up to New Deal in Great Britain at the end of December 2003.

NEW DEAL 18-24

Jobs

• Since the New Deal scheme began, 56,600 young people in Scotland have gone into jobs from New Deal compared to 479,700 across Great Britain. In 2003, between October and December, 2,500 in Scotland and 19,900 in Great Britain entered jobs.
• Of the 56,600 entering jobs in Scotland, 43,800 (77%) were sustained.

Participants

• There were 124,100 starts on New Deal in Scotland by the end of December 2003. Of these 114,400 clients have left the programme, leaving 9,800 participants still on New Deal. This compares to 86,400 participants in New Deal in Great Britain.

• Of the 9,800 participants in New Deal 18-24 at the end of December in Scotland, the majority 5,700 (59%) were on the New Deal Gateway, 2,470 (25%) were on options and 1,580 (16%) were on follow through.

Destinations

• Of the 114,400 leavers, 39% went into unsubsidised employment, 14% to other benefits, 22% to other known destinations and 25% to unknown destinations.

• 9% of leavers for unsubsidised employment leave before having an initial interview, 55% leave during Gateway, 19% leave from an option and the remainder, 16% leave from Follow Through.

Client group Unemployment

• Youth unemployment (18-24s unemployed for 6 months or more) in Scotland was 3,800 in January 2003, an increase of 14% in the last year, compared to an increase of 10% in Great Britain as a whole.

NEW DEAL 25+ (original and enhanced programmes combined)

Jobs

• Since the New Deal 25+ scheme began, 20,000 people in Scotland have gone into jobs compared to 173,700 across Great Britain.
• Of the 20,000 entering jobs in Scotland through the enhanced programme, 15,300 (76.4%) were in sustained employment.

Participants

• There were 74,400 starts on New Deal 25+ in Scotland, including 37,000 to the enhanced programme, by the end of December 2003. Of these, 68,200 clients have left the programme, leaving 5,900 participants. This compares to 56,900 participants on the enhanced programme in Great Britain.

• 17% of participants on the enhanced New Deal 25+ in Scotland are aged over 50 years and 86% of clients are male (data no longer available for original programme).

• Of the 5,900 participants on the enhanced New Deal 25+ at the end of December 2003 in Scotland, the majority, 58%, were on Gateway and 6% were in subsidised employment.

Destinations

• 25% of all leavers from the enhanced New Deal 25+ find unsubsidised employment while 30% return to claiming JSA without taking up a New Deal opportunity, a similar proportion to Great Britain as a whole.

Client Group Unemployment

• Long term unemployment (over 25s who have been unemployed for 18 months or more) in Scotland was 7,000 in January 2004, a fall of 9% in the last year compared to a decrease of 8% for Great Britain as a whole.

NEW DEAL 50+

On the 6th April 2003 the Employment Credit was replaced by the over 50s element of the Working Tax Credit (WTC). In future, the number of WTC awards to New Deal 50plus clients will be used to measure the number of jobs gained through the programme however, the number of WTC claims and awards are not yet available from the Inland Revenue. Information on WTC for people aged 50plus will be available in Spring 2004.

Client Group Unemployment

• The number of people in Scotland aged 50+ and unemployed for over 6 months, was 8,200 in January 2004. This was an increase of 2% in the last year.

NEW DEAL FOR LONE PARENTS (DATA TO END DECEMBER 2003)

The next quarterly News Release, New Deal for Lone Parents in Scotland: statistics to the end December 2003, is published on 4 ^th March 2004 and can be viewed online from that date at:

http://www.scotland.gov.uk/stats/bulletins/00325-00.asp

GLASGOW EMPLOYMENT ZONE (DATA TO END MAY 2003)

Fifteen Employment Zones were established in April 2000 in areas of GB with persistently high unemployment. Employment Zones target participants aged 25 years and over who have been receiving income-based JSA for 12 months plus or 18 months plus. Participation is mandatory. The Glasgow Employment Zone targets those unemployed for 18 months or more.

Statistics for the Glasgow Zone are updated every six months and will next be reported in the June 2004 news release. The last statistical update for the Glasgow Zone, providing data to the end May 2003, was provided in the November News Release which can be found at:

http://www.scotland.gov.uk/stats/bulletins/00300-00.asp

RECENT PUBLICATIONS

Department for Work and Pensions Research and Development Reports:

• WAE175 The Wider Labour Market Impact of Employment Zones
• WAE176 Evaluation of Employment Zones: report on a cohort study of long-term unemployed people in the zones and a matched set of comparison areas
• WAE177 Creating Local Opportunity: self-employment and labour market outcomes from DHP business start up programmes in Barnsley, Doncaster and Sheffield
• WAE178 Lone Parent Personal Adviser Meetings: Qualitative evaluation and case studies on delivery of six month review meetings
• WAE179 The lone parents and Partners outreach service commenced in April 2002 and runs for 2 years. This report provides an evaluation of the initiative
• WAE180 New Deal for Disabled People National Extension: first wave of the first cohort of the survey of registrants
• WAE181 Lone Parents and Employment: International comparison of what works
• WAE182 Evaluation of Lone Parent Work Focussed Interviews: Final findings from administrative data analysis

FURTHER INFORMATION

The Department for Work and Pensions New Deal statistical first release for GB and the regions, "New Deal for Young People and Long Term Unemployed aged 25+" can be accessed from the URL, www.statistics.gov.uk/press_Release/CurrentReleases.asp

New Deal for Young People (New Deal 18-24): data for Scotland and GB

• Table 1: Summary of New Deal 18-24 as at end of December 2003
• Table 2: Numbers participating in New Deal 18-24 at end of December 2003
• Table 3: Immediate destinations on leaving New Deal 18-24 by stage reached
• Table 4: Summary of people into jobs through New Deal 18-24
• Chart 1: Numbers starting and leaving New Deal 18-24 by Quarter (Scotland)
• Chart 2: Position of those on New Deal 18-24 (Scotland)
• Chart 3: Entries to jobs from New Deal 18-24 (Scotland)
• Chart 6: Destination by stage of leaving New Deal 18-24 (Scotland)

New Deal 25+: data for Scotland and GB

• Table 5: Summary of Enhanced New Deal 25 + as at end of December 2003
• Table 6: Numbers participating in New Deal 25+ at end December 2003
• Table 7: Immediate destinations on leaving Enhanced New Deal 25+ by stage reached
• Table 8: Summary of people into jobs through Enhanced New Deal 25+
• Chart 4: Numbers starting and leaving New Deal 25+ (enhanced programme) by Quarter (Scotland)
• Chart 5: Entries to jobs from New Deal 25+ (enhanced programme) (Scotland)

Alternatively, contact David McPhee, ETLLD, Transitions to Work: 3, Scottish Executive, Meridian Court, 3 ^rd Floor, Cadogan Street, Glasgow G2 6AT. Telephone 0141-242-5490.

Email: labour-market.statistics@scotland.gsi.gov.uk

New Deal Policy Design

More detailed information on the New Deal policy design can be found on the internet. The address of the national New Deal website is: www.newdeal.gov.uk. In addition, a website covering Welfare to Work initiatives has recently been created and can be found at: www.w2w.org.uk

Details on criteria for early entry to New Deal are described in the News Release dated 29 June 2000: New Deal for Unemployed People in Scotland: Statistics to end April 2000, at the URL, http://www.scotland.gov.uk/stats/bulletins/00002-00.asp

Notes for News Editors

The New Deal for the Young Unemployed was introduced nationally on 6 April 1998. The New Deal for the Long-term Unemployed was launched throughout the country on 29 June 1998.

Employment policy is reserved to the UK Government, which takes the lead on the funding and delivery of the New Deal. In Scotland it does this in partnership with the Scottish Executive and contributing Scottish organisations, many of whom provide New Deal services under contract or provide funds and other resources, including training funds, to enhance the quality of New Deal at local level.

Further notes for News Editors can be found in the News Release dated 29 June 2000, at the URL, http://www.scotland.gov.uk/stats/bulletins/00002-00.asp

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