Publication of Jobcentre Plus vacancy statistics

Labour Market Trends, Jun 2005 by Bentley, Russ

Key points

* Publication of Jobcentre Plus vacancy statistics was deferred in 2001 because of distortions in the data.

* Publication of some vacancy data is being restored by the DWP to provide an insight into Jobcentre Plus performance. The statistics will, however, not be reinstated in ONS's labour market statistics First Release because of concerns over their appropriateness as a labour market indicator.

* From June 2005, data on Jobcentre Plus vacancies, including inflows, unfilled stocks and outflows, are being published for an enhanced range of geographies including super output areas, parliamentary constituencies, local authority districts, and wards. Limited back data are available, but the figures are not directly comparable with those previously published.

* Interpretation of the data needs to take account of significant changes to Jobcentre Plus procedures for dealing with employers' vacancies.

Introduction

Jobcentre vacancy statistics have traditionally been produced as a by-product of the administrative systems used for handling vacancies notified by employers. The figures have been published, for example, in the tables section of Labour Market Trends (see Tables G. 11, G.12 and G.13).

In September 2001 ONS, with the agreement of the Department for Work and Pensions (DWP), deferred the publication of Jobcentre Plus vacancy statistics because of distortions in the data from May 2001 onwards. In September 2002 publication of notified vacancies (inflows) only was resumed on Nomis®.

The purposes of this article follow below.

* To publicise the restoration on Nomis® of Jobcentre Plus vacancy stock and outflow data together with improvements to the range of available geographies and explain how these have been derived.

* To announce the publication of National Statistics on Jobcentre Plus vacancies in the quarterly DWP Statistical Summary in light of the decision by the National Statistician not to restore the data to ONS's labour market statistics First Release because of concerns over their suitability as a labour market indicator.

* To summarise technological and operational changes to vacancy taking and handling within Jobcentre Plus, including the advent of e-channels and what this means for the interpretation of the vacancy series.

* To provide summary time series analyses and illustrate the dynamics between vacancy inflows, stocks and outflows.

* To highlight the uses and limitations of the datasets.

* To summarise the position in regard to the derivation and dissemination of Northern Ireland Jobcentre vacancy statistics.

Changes to Jobcentre Plus vacancy taking and handling

Interpretation of the Jobcentre vacancy time series requires an understanding of the changes that have taken place within Jobcentre Plus both for vacancy taking and vacancy handling and the impact these have had on flow and stock data.

The past few years has seen a significant period of change within Jobcentre Plus in both the taking and handling of employers' vacancies. A previous Labour Market Trends article explained how changes to vacancy taking resulting from the introduction of Employer Direct in 2001 (which moved vacancy taking and follow up away from local Jobcentres to a virtual network of contact centres), affected the vacancy series (see pp363-68, July 2003). Since then, other elements of Jobcentre Plus modernisation of services to employers have been introduced. The strategy has been to offer employers a wider choice of channels through which to notify their vacancies. In addition to telephone, e-mail and fax options offered by Employer Direct, use of e-channels has been developed through Employer Direct online (allowing employers to notify and update vacancies directly to Jobcentre Plus via the internet). For employers and agencies who do not require the additional services offered by Jobcentre Plus of matching clients to vacancies, a Job Warehouse has been developed.

As the name suggests, this allows selected recruiters to provide information on vacancies to a central database that can be accessed by jobseekers. Vacancies notified by this route are not recorded as Jobcentre Plus vacancies and hence are not included in the statistical series. The take up of both Employer Direct online and Job Warehouse is small but growing, with the national implementation of Employer Direct online in March 2005. The introduction of Job Warehouse is slower and dependent on ecapabilities within recruiting organisations and their suitability for this channel. Both initiatives illustrate how vacancy inflow volumes could be influenced by operational change either through boosting the market share of all vacancies handled by Jobcentre Plus by attracting new business, or by displacing inflows through the availability of Job Warehouse.

These technological changes have been accompanied by operational change within Jobcentre Plus to establish closer customer relationships with employers. From April 2003 Jobcentre Plus undertook a more significant focus on marketing of Jobcentre Plus services to employers (through telemarketing campaigns to attract more business, establishment of a national sales force and tiers of account managers, and introduction of targets for the number of notified vacancies). In addition, a number of Service Level Agreements have been established with agencies. The impact of this on the vacancy series has been an increase in notified vacancies in certain sectors of the economy, for example, public administration, health and social work, and real estate and business activities including agency business.