Unemployment
Councils with more people claiming unemployment-related benefits at the start of the 2019 to 2024 period saw somewhat faster rent growth in the simple comparison, and over 2015 to 2024 a rising claimant rate went with faster growth. Neither pattern survives once house prices and the other factors are allowed for.
The claimant rate is the share of residents aged 16 to 64 claiming. Since Universal Credit it also counts some people in work on very low earnings who are required to look for more, so it's a broad sign of local labour market strain rather than a pure unemployment count. It also rose in many places as Universal Credit rolled out, whatever the local economy was doing, so part of the change since 2015 reflects the switch to the new benefit.
Frequently asked questions about unemployment and rents
Do rents rise faster where unemployment is higher?
In the simple comparison, councils with a higher claimant rate at the start of 2019 to 2024 saw somewhat faster rent growth, and over 2015 to 2024 a rising claimant rate went with faster growth. Neither pattern survives once house prices and the other factors are allowed for.
What is the claimant rate?
The share of residents aged 16 to 64 claiming unemployment-related benefits. Since Universal Credit it also counts some people in work on very low earnings who are required to look for more, so it's a broad sign of local labour market strain rather than a pure unemployment count.
Why is the claimant rate change since 2015 hard to read?
It rose in many places as Universal Credit rolled out, whatever the local economy was doing. Part of the change since 2015 reflects the switch to the new benefit rather than more people losing work.