New Deal for Unemployed People in Scotland: Statistics to End
April 2000
The Scottish Executive Enterprise and Lifelong Learning Department has 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+).
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.
Summary information up to the end of April 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). The New Deal for the Long-term Unemployed was launched throughout
the country on 29 June 1998.
The information in these News Releases is supplemented by the New Deal evaluation
results. These are generally published as Employment Service Research Reports;
key results are summarised from time to time in articles in Labour Market Trends
and Scottish Executive statistical bulletins.
A NATIONAL STATISTICS PUBLICATION
The main findings are: -
New Deal for the Young Unemployed (New Deal 18-24)
- In April, 1,700 joined the New Deal 18-24 in Scotland, bringing the total
number of starts so far to 52,200. This compares to figures of 13,800 and
470,400 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 (Tables
A1 & A2).
- 37,500 participants left the New Deal 18-24 programme up until the end of
April in Scotland, leaving 14,800 participating at the end of April. Three
quarters of participants at the end of April were male and 11 per cent of
participants were people with disabilities (Table A1).
- Up to the end of April, 18,100 young people in Scotland had gone into sustained
employment from New Deal 18-24, of which 14,900 entered unsubsidised employment.
A further 6,900 had gone into employment lasting less than 13 weeks —
6,500 of these were unsubsidised employment (Table A5).
- Of the 37,500 who had left New Deal 18-24 in Scotland, 15,000 (or 40%) had
entered sustained unsubsidised employment, 8,900 from the Gateway, 2,000 from
an option and 2,300 from the follow-through. 5,200 (or 14%) had transferred
to other benefits, 8,300 (or 22%) had left for other known reasons and 9,000
(or 24%) for unknown reasons (Table A4).
- Of the 14,800 participants in New Deal 18-24 at the end of April in Scotland,
the majority 6,600 (or 45%) were on the New Deal Gateway, 40% were on options
and 15% were on follow through. Of those on one of the options; 29% were on
the subsidised employment option and 32% were on the full-time education and
training option (Table A2).
New Deal for the Long-term Unemployed (New Deal 25+)
- In April, 1,100 joined the New Deal 25+ in Scotland, bringing the total
number of starts so far to 25,700. This compares to figures of 10,100 and
258,400 across Great Britain (Table B1).
- 12% of participants in New Deal 25+ in Scotland have been aged between 25-29
and 28% have been older clients aged 50 and over (Table B2).
- 17,400 participants left the New Deal 25+ programme up until the end of
April in Scotland, leaving 8,300 participating at the end of April. Around
85% of participants at the end of April were male and 19% of participants
were people with disabilities (Table B1).
- Up to the end of April, 3,000 people in Scotland had entered sustained employment
from New Deal 25+, of which 2,200 people had entered unsubsidised employment.
A further 600 had gone into employment lasting less than 13 weeks (Table
B4).
- Of the 8,300 participants in New Deal 25+ at the end of April 2000 in Scotland,
the vast majority 6,900 (83%) were on the Advisory Process; 9% were on Training
for Work and 6% were in subsidised employment (Table B2).
TABLES
The tables show figures up to the end of April 2000 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 twenty-eight months January 1998 to April
2000.
Table A2: Numbers participating in New Deal 18-24
at the end of April 2000 - showing where those participating at the end of April
were in the New Deal process.
Table A3: Numbers moving on from the New Deal 18-24
Gateway by immediate destination - showing the breakdown of the number of people
leaving the Gateway over the twenty-eight months January 1998 to April 2000
by their immediate destination.
Table A4: Immediate destinations on leaving New Deal
18-24, by stage of New Deal process reached - detailing the destinations of
leavers over the twenty-eight months January 1998 to April 2000 according to
where they were in the New Deal process at the time they left.
Table A5: Numbers into employment from New Deal 18-24
— splitting both subsidised and unsubsidised jobs over the twenty-eight
months January 1998 to April 2000 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 twenty-two months July 1998 to April
2000.
Table B2: Numbers participating in New Deal 25+ at
the end of April 2000 - showing where those participating at the end of April
were in the New Deal process.
Table B3: Numbers moving on from New Deal 25+ Advisory
Interview Process by destination - showing the breakdown of the number of people
leaving the Advisory Process over the twenty-two months July 1998 to April 2000
by their destination.
Table B4: Numbers into employment from New Deal 25+
— splitting both subsidised and unsubsidised jobs over the twenty-two months
July 1998 to April 2000 into those that are sustained and those lasting less
than 13 weeks.
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 Numbers entering & leaving New Deal
18 — 24 by month cumulative
Chart 3: Position of those on New Deal 18-24 at the
end of April 2000 - showing the relative split between the Gateway and Options.
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 - subsidised and unsubsidised jobs are shown.
Chart 6 Numbers entering & leaving New Deal 25+
by month cumulative
Chart 7: Entries to sustained jobs from New Deal
25+ - subsidised and unsubsidised jobs are shown.
NOTES FOR NEWS EDITORS
1. 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 July 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 August,
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. 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 un-stated 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 1998,
but it was not recorded on IT systems until April 1998. 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 in January to March 1998.
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 equivalencies 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. Separate News Releases are being released by the Department for Education
and Employment and Welsh Office.
Further Information
29. 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
30. Public enquiries (non-media) about the information contained in this News
Release should be addressed to Karen Pidd, New Deal Branch 2, The Scottish Executive
Enterprise and Lifelong Learning Department, Floor 3, Meridian Court, Cadogan
Street, Glasgow, G2 6AT. Telephone 0141-242-5490 or email: karen.pidd@scotland.gov.uk
News Release
29 June 2000
Criteria for early entry to New Deal
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New Deal for Young Unemployed
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People with Disabilities
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Literacy/numeracy difficulties
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English (/Welsh/Gaelic) as Second Language need
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Ex-regular member of armed forces
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Ex-offender
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Lone parent
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Labour market returner
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Somebody who is now actively seeking work, not having participated
in the labour market for several years
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Large-scale redundancy victim
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Local authority care
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‘28-day rule’
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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
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Other early entrants
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Those 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
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New Deal for Long-Term Unemployed
People who have been claiming JSA continuously for a year or more:
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People with Disabilities
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Literacy/numeracy difficulties
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English (/Welsh/Gaelic) as Second Language need
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Ex-offender
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Other early entrants
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Those 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
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Those claiming other benefits
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Those 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
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‘linking rule’
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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
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