Stockton JSNA


Employment

Data and Intelligence

Despite a positive downward trend in the number of job seekers over the past four years, there are still a large number of people who are not in work, but actively seeking it, particularly those from the most deprived areas of Stockton-on-Tees.

In September 2017 there were 3,810 people claiming Jobseekers Allowance or claiming Universal Credit whilst not in employment in Stockton-on-Tees. The Wards of Stockton Town Centre, Parkfield and Oxbridge, Mandale and Victoria, Newtown, Hardwick and Salters Lane and Billingham East together have more claimants than the other 21 Wards combined.

In Wards such as Ingleby Barwick West and Northern Parishes, less than 1% of working age people is claiming unemployment benefit whilst in Stockton Town Centre more than 10% of working age people claim unemployment benefit.

Males are more likely to claim unemployment benefit with 4.1% of working age males in the Borough making up the claimant count compared to 2.1% of working age females. 

3.1% of working age residents in Stockton-on-Tees claim unemployment benefit, which is lower than the wider Tees Valley (4.0%), similar to the North East figure of 3.2% but higher than the UK average of 1.9%.

FIGURE 1 – UNEMPLOYMENT BENEFIT CLAIMANTS, 2013 TO 2017

Despite a downward trend in the number of people claiming out of work benefits there are still a significant number of people of working age who are reliant on benefits due to illness, disability or caring responsibilities, particularly in the most deprived areas.

FIGURE 2 – OUT OF WORK BENEFIT CLAIMANTS, 2011 TO 2016

Jobseeker’s Allowance claimants and those people claiming Universal Credit but seeking work are not the only people claiming an ‘out-of-work’ benefit.  Many people of working age in Stockton-on-Tees are reliant on benefit payments yet are not seeking work due to illness, disability, or a need to care for children or someone else. The numbers of claimants in these groups have reduced over the last 5 years, but remain high in deprived areas.

There is a high prevalence of ‘employment’ deprivation in certain areas of Stockton-on-Tees.

There is a strong correlation between the pattern of employment deprivation and other types of deprivation, such as those relating to ‘skills’, ‘income’ and ‘health’. 23% of Lower Super Output Areas (LSOAs) in Stockton-on-Tees are in the most deprived 10% nationally for the ‘employment’ domain.

The Index of Multiple Deprivation (IMD) includes an ‘employment’ domain, which highlights employment deprivation based on a score that looks at a range of indicators relating to benefit claimants.  Specifically:

  • Claimants of Jobseeker’s Allowance (both contribution-based and income-based) - women aged 18-59 and men aged 18-64
  • Claimants of Employment and Support Allowance (both contribution-based and income-based) - women aged 18-59 and men aged 18-64
  • Claimants of Incapacity Benefit - women aged 18-59 and men aged 18-64
  • Claimants of Severe Disablement Allowance - women aged 18-59 and men aged 18-64
  • Claimants of Carer’s Allowance - women aged 18-59 and men aged 18-64.

FIGURE 3 – INDEX OF MULTIPLE DEPRIVATION (IMD), 2015, EMPLOYMENT DOMAIN BY LSOA

Despite a fall in the number of people reliant on housing benefit, there are still issues of low-pay and in-work poverty that need to be addressed.

It is not just people who are unemployed that require support. There are issues with low-pay and in-work poverty that also need to be addressed.  There are issues of long-term unemployment and people that face multiple and complex barriers to accessing employment. 

Anecdotally, an indicator of the income levels of residents is to consider those that are eligible to receive Housing Benefit and/or Council Tax support that are also in employment / self-employment (as these are means tested benefits).  At the end of the financial year 2016-2017 there were 2815 claimants in employment (including 488 self-employed), which equates to 3% of the working age population in employment that are in receipt of those benefits.

The number of people with no qualifications has reduced, with an increase in other qualification Levels, however the changing labour market will demand higher levels of skills and qualifications.  Therefore, there is a risk that those that are lower skilled may find it difficult to access the highly skilled occupations of the future.

The UKCES Working Futures model predicts that Tees Valley will have 133,000 jobs that will need filling between 2014-2024. This figure is made up of 17,000 new jobs and 116,000 replacement jobs. 

High qualifications / highly skilled occupations are making up an ever increasing share of total employment; with over half of the aforementioned 133,000 Tees Valley jobs predicted to require a Level 4 or above qualification.

In addition 45% of those jobs are projected to be highly skilled ‘managerial’, ‘professional’ or ‘associate professional and technical’ occupations. It is estimated that between 2014 and 2024 four in every ten jobs will require replacing, which is a significant future demand for skills in the local economy.

FIGURE 4 – EMPLOYMENT BY OCCUPATION, 1994 TO 2024

A tool that looks at supply and demand in the local labour market can be found here:

http://wheretheworkis.org/#/?location_type=LEPplus&location=Tees%20Valley

Of those people that are claiming Jobseekers Allowance a large proportion of them are seeking lower skilled occupations, which could be indicative of a misaligned labour market.

The ‘sought occupations’ of people on Jobseekers Allowance (JSA) are recorded and published by the Department for Work and Pensions (DWP).  Both nationally and locally there has been a reduction in JSA claimants over the last 5 or so years, but a stark rise in the number and proportion of claimants whose ‘usual’ or ‘sought’ occupation is recorded as ‘sales occupations’.  

In 2005 less than 10% of JSA claimants in Stockton had ‘sales occupations’ listed as their usual or sought occupation. The most common occupation classification was ‘Elementary Trades, Plant and Storage Related Occupations’; with more than a quarter of claimants listed as ‘in’ or ‘seeking’ this type of job. By October 2017 around 12% were ‘seeking’ or ‘in’ ‘Elementary Trades, Plant and Storage related Occupations’ whilst around 65% were seeking employment in ‘Sales Occupations’. This is shown in Figure 5.

FIGURE 5 – SOUGHT OCCUPATIONS OF JOB SEEKERS, 2005 TO 2017

An increase in job vacancies is also indicative of a misaligned labour market.

Many believe a lack of jobs is the main causal factor for high levels of claimant unemployment however vacancy information suggests an increasing demand for labour in Stockton-on-Tees.

Compared to the same period in 2016, Stockton-on-Tees has seen a 22% rise in job vacancies in 2017. Numbers increased from 2,067 in 2016 to 2,526 in 2017 (459 extra vacancies):

  • There has been a 103% increase in vacancies for ‘Administrative’ occupations, with numbers increasing from 159 to 322 (163 extra vacancies).
  • This is followed by a 46% increase in ‘Science, Research, Engineering and Technology Professionals’ with vacancies rising from 170 to 249 (79 extra vacancies).

Compared to the same period in 2014, Stockton has experienced the largest increase in vacancies across Tees Valley with a 73% rise and numbers increasing from 1,459 in 2014 to 2,526 in 2017 (1,067 extra vacancies).

  • There has been a 171% rise in vacancies for ‘Administrative’ occupations; with numbers increasing from 119 to 322 (203 extra vacancies).
  • This is followed by a 105% rise in vacancies for ‘Business and Public Service Associate Professionals’, with numbers rising from 117 to 240 (123 extra vacancies).

The Tees Valley ‘Education, Employment and Skills Plan’ was launched in December 2017 and states that “there are skills shortages across most of our key sectors, and employers cite a lack of skilled workers as their greatest barrier to growth”.

Research suggests that a young person who has 4 or more encounters with an employer is 86% less likely to be unemployed or not in education or training (NEET), and can earn up to 18% more during their career.

Labour market mismatches are not just related to those who do not have the skills and qualifications to carry out the jobs where there is a demand for specific skills.  When people study and gain qualifications that may not be needed in the local labour market or their current job they may be considered over-educated or under-utilised.

FIGURE 6 – PERCENTAGE OF THOSE IN EMPLOYMENT DEFINED AS ‘MISMATCHED’, 16 TO 64 YEAR OLDS, UK, 4 QUARTER ROLLING AVERAGES, 2003 TO 2015

Teesside University is the most popular higher education destination for Stockton-on-Tees’ residents.  Of 1,855 Stockton-on-Tees’ residents that gained a graduate or post-graduate qualification in 2015-2016, 49% studied at Teesside University.

80% of graduates who lived in Stockton-on-Tees prior to starting higher education found employment or were due to start employment 6 months after completing their education.  Of these, 65% found employment within Tees Valley; with 33% finding employment in Stockton-on-Tees.                  

50% of Tees Valley students travelled outside Tees Valley for university in 2014-2015.  However, 61% of these students found employment in Tees Valley once they had graduated.

Looking more closely at the 61% who found employment within Tees Valley - Middlesbrough employed the largest amount of Tees Valley graduates at 22%, followed by Stockton-on-Tees at 17%. This is despite the Stockton-on-Tees’ labour market consisting of 38.0% more jobs than Middlesbrough.

Employment rates are lower for those people with disabilities and/or health conditions.

People with disabilities had an employment rate 31.3 percentage points lower than people without disabilities between April and July 2017.

FIGURE 7 – KEY LABOUR MARKET STATISTICS BY DISABILITY STATUS, UK, AGE 16-64, APRIL TO JUNE 2017

Disabled people with multiple health conditions had lower employment rates than those with one health condition. People with one health condition had an employment rate of 60.8%. Disabled people with at least two health conditions had an employment rate of almost nine percentage points lower than those with one condition.

FIGURE 8 – EMPLOYMENT RATE (%) BY NUMBER OF HEALTH CONDITIONS, UK, AGE 16-64, APRIL TO JUNE 2016

The type of health condition also had a large impact on the employment rate of disabled people. People with mental health conditions and learning difficulties had the lowest employment rates whilst those with disfigurements, hearing and sight problems, and digestive problems had higher employment rates.

For all health conditions people with disabilities had lower employment rates than those without disabilities.  The highest employment rate for a health condition group (severe disfigurements, skin conditions and allergies) was still 13.6 percentage points below the equivalent figure for non-disabled working age adults.

FIGURE 9 – EMPLOYMENT (%) OF PEOPLE WITH DISABILITIES BY HEALTH CONDITION, UK, AGE 16-64, APRIL TO JUNE 2016

The public health outcomes relating to employment show some indicators that are worse compared to the England benchmark

The spinal chart on the following page contains a range of indicators from the Public Health Outcomes Framework relating to employment and shows the position in Stockton-on-Tees compared to national averages and other Local Authorities.

The headline unemployment rate is significantly below the national average as is the 2015 level of 16-18 year olds Not in Employment, Education or Training (NEET).

The Borough also scores relatively poorly for the level of unpaid carers, long-term claimants of Jobseeker’s Allowance and adults accessing mental health support in employment amongst other measures.

The Borough has a better score than national averages for homelessness amongst people aged 16-24, the gap in employment rate between those with a health condition and learning disability and the rest of the population, amongst other measures.

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