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Unemployed refusing to claim Jobseekers allowance cutting cost to Exchequer

Analysis of national statistics by reveals that the hidden unemployed, the nearly half a million unemployed people over 25 who do not claim Jobseekers Allowance, collectively save the taxpayer over 30 million every week.

John Salt, director at says of the findings:
Our findings show that there are about half a million people in hidden unemployment those over 25 who are trying to be self reliant by not claiming benefits despite not being in work. But our research also shows just how tough it is to get a job at the moment and people out of work should not underestimate the challenges they face.

Those eligible but not claiming Jobseekers Allowance may have unrealistic expectations of how quickly they can re-enter employment. Research from shows that jobseeker confidence fell sharply between March and September. Over half of jobseekers (53%) were classed as not at all confident, when asked whether they would find a job within the next two months, this is up from 43% in March this year. Asked the same question about their prospects over the next six months, those classed as not at all confident has gone from a fifth (21%) to over a quarter (27%).

This lack of confidence among jobseekers comes as the government unveil cuts expected to lead to over a million job losses in both public and private sectors. As cuts have been announced, has tracked a rise in the competition to find work, peaking at 18 applicants per job in the last quarter. This increased competition for jobs has led to the situation where 62% of all jobseekers have applied for over 11 jobs, and over a quarter (28%) have not been invited to a single interview.
The lack of permanent, full time jobs and the competition for each role is forcing jobseekers to make significant sacrifices to secure work. Nearly half of all jobseekers would take a pay cut in excess of 10% (compared to their current or previous job) to enter employment.

A clear trend of the downturn has been the growth in part time work with ONS statistics showing that part-time workers now account for nearly a third of the labour force (29%). When asked why they had taken part-time work, 28% of respondents replied that they had been forced into it by the lack of full time options. Further anecdotal evidence suggests that many others were now part time because employers have reduced working hours.

John Salt continues:
The fall in jobseeker confidence is understandable given that the increase in the number of jobs available has been more than offset by the number of applications companies are receiving. In the face of increased competition and fearing longer term unemployment, jobseekers are willing to make sacrifices whether that be in pay, hours or work conditions.


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