Work and worklessness

Key points

  • Unemployment in London did not begin falling when the recession ended. In 2010, the proportion of working-age adults in London who were unemployed was at its highest since 1997.
  • By mid 2011, the number of unemployed people in London was over 400,000. Unemployment was rising faster in London than the national average.
  • In addition to rising unemployment, the number of working-age people lacking but wanting work has risen to 350,000. On top of this, there are 170,000 people in part-time work who want a full-time job. In total, there are 900,000 people in London either unemployed or underemployed.
  • As a result of the recession, unemployment went up in almost all London boroughs. But both the levels of unemployment and the rises resulting from the recession have been higher in other cities in England such as Hull, Manchester and Birmingham.
  • The unemployment rate among young adults in London is, at 23%, far higher than the average (9%) and higher than for young adults in the rest of England (19%). Moreover, it rose in 2010 when the average rate of unemployment was static.
  • There are significant variations in worklessness between ethnic groups and by gender. Over two-thirds of Bangladeshi and Pakistani women are not in paid work, compared to one-third of White women.
  • Disabled people in London are more likely to lack work than disabled people in the rest of England. This is particularly true in Inner London, where 61% of disabled working-age adults are not working, compared to 50% outside of London. The gap in work rates between disabled and non-disabled adults is higher in Inner London than anywhere else.

Find out more about Work and worklessness by visiting the indicators in this section, listed on the right.

In this section, we look at different aspects of worklessness, by which we mean lacking paid employment. Unemployment is the most commonly used definition. To be classed as officially unemployed, an individual must be out-of-work, looking for work and available to start work in the next two weeks. It should be noted that this is not the same as being eligible for Job Seeker's Allowance. JSA eligibility expires for many people after 6 months, when they could still be unemployed.

A broader definition of those "lacking but wanting" work includes the economically inactive who want paid work. People in this group are not officially unemployed as they are either not currently looking for work or not available to start working. Finally, there are those who do not want paid work. This group are mainly either disabled, have a limiting long-term illness or looking after family (undertaking unpaid care work of children or other family members including the elderly and disabled).

Visit the glossary for more detailed definitions.

We also look at those who are working part-time but want a full-time job.

Back to all topics

Glossary

Inner London:

Camden, Hackney, Hammersmith & Fulham, Haringey, Islington, Kensington & Chelsea, Lambeth, Lewisham, Newham, Southwark, Tower Hamlets, Wandsworth, Westminster

Outer London:

Barking & Dagenham, Barnet, Bromley, Bexley, Brent, Croydon, Ealing, Enfield, Greenwich, Harrow, Havering, Hillingdon, Hounslow, Kingston upon Thames, Merton, Redbridge, Richmond upon Thames, Sutton, Waltham Forest

Low pay:

The most commonly used threshold is 60% of median male full-time hourly earnings. This was £7.50 in 2008 and is the threshold used throughout this website.

Workless :

People who are not working but want a job and those people who are officially unemployed make up a group who can be described as 'lacking work but wanting work'. Anyone else of working-age who is not working is therefore 'lacking work but not wanting work'. The total workless population therefore includes those lacking and wanting work as well as those lacking but not wanting work.

Unemployed:

Someone wanting and actively seeking work who is available to start a full-time job straightaway

Read all glossary definitions

Site designed and built by Lift