Reblogged from http://voxpoliticalonline.com/2014/11/12/unemployment-rate-could-be-twice-as-high-as-figures-claim/

12 Wednesday Nov 2014

Posted by Mike Sivier

The Office for National Statistics has put out new figures on the number of people in work – and it’s more than last month. Hooray!

But, as ever, the devil’s in the detail and – as usual – the small print is annoyingly devoid of the detail we need. Boo!

We are told that figures for September showed employment continued to rise (by 112,000 since the April-June period) and unemployment continued to fall (by 115,000 people). There appear to be 3,000 people for whom these figures don’t account. Interesting…

(Perhaps they’re now on Universal Credit – as those figures aren’t counted in these figures, meaning the current way of calculating these statistics is misleading from the start.)

Pay rates – excluding bonuses – was 1.3 per cent higher than at this time last year. This was being trumpeted as a huge success, as pay has risen about the Consumer Price Index (CPI) calculation of inflation, which stood at 1.2 per cent in September. What a shame the more accurate (which is why the government doesn’t use it) Retail Price Index (RPI) calculation of inflation stood at 2.3 per cent, well above in increase in pay rates.

Let’s all take a moment to remind ourselves of where those wages are going, too. Tom Pride, over at Pride’s Purge, has a little graphic for it, which is stolen and reproduced below:

So all those bankers, directors and MPs are taking all the cash, leaving the rest of us with – what? This article suggests that, when you take out all the variations – like bonuses, wages for people who do real jobs (unlike bankers, directors and MPs) increased by just 0.6 per cent in the past year. That’s from the Bank of England.

If employment has increased – and there’s no reason to say it hasn’t – we can also conclude that the reason employers are more willing to take people on is that they can pay peanuts for them and rely on the government to top them up with in-work benefits. It seems likely that the work was always there but employers weren’t going to take anybody on if it meant increasing the wages bill and reducing the amount of profit available to them. Now that zero-hours contracts are available, along with part-time schemes that deny people pensions and holiday pay, it’s a different matter.

Of course the trade unions are in no position to stand up for workers’ rights – they have been stripped of any influence over the past 35 years of neoliberal, free-market rule.

The number of people who were self-employed increased by a staggering 186,000, to reach 3.25 million, while people working as self-employed part-time increased by 93,000 to reach 1.27 million. That’s 4.52 million – almost one-sixth of the total number of people in work. If you think that’s great, you haven’t been paying attention. Remember this article, warning that the increase was due to older people staying in work? And what about the catastrophic collapse in self-employed earnings we discovered at the same time?

How many of these are people who have been persuaded to claim tax credits as self-employed people, rather than jump through the increasingly-difficult hoops set out for them if they claimed Jobseekers’ Allowance – and do they know they’ll have to pay all the money back when their deception is discovered?

The number of people in part-time employment has also increased, by 28,000 to reach 6.82 million. Are we to take it that this means under-employment has increased again?

Public sector employment has fallen again. If you want to know why the government keeps messing you around, there’s your answer. There aren’t enough people to do the job. This month’s statistics show 11,000 fewer public sector employees than in March, and 282,000 fewer than this time last year.

Unemployment is said to have dropped – but remember, this is not counting people who have been sanctioned. A recent study by Professor David Stuckler of Oxford University suggests as many as half a million people could have been sanctioned off-benefit in order to massage the figures, meaning that the total listed – 931,700 – is probably wrong. Remember also that Universal Credit claimants aren’t counted, nor are those on government work schemes – another 123,000 people.

This means the actual unemployment rate is likely to be double the number provided by the official statistics.

And what about people on ESA/DLA/PIP?

It’s said that the numbers don’t lie.

What a shame that can’t be said about the people manipulating them.