Did unemployment rise to 30 per cent under Labour?

'She [Fiona Mactaggart MP(Slough) (Lab)] should know that unemployment rose to its level of 30 per cent under her party's Government.'

Chloe Smith, Economic Secretary to the Treasury, Treasury Questions, 1 November 2011

In the Treasury's Questions yesterday the newly appointed Economic Secretary to the Treasury Chloe Smith claimed that unemployment rose to 30 per cent under the previous Labour government. This figure seemed surprisingly high, given that the current unemployment is only 8.1 per cent overall and 8.3 per cent amongst those aged between 16 and 64.

Full Fact decided to take a closer look.

Analysis

The most reliable source of information concerning unemployment rates is the Office for National Statistics' (ONS) Labour Market Statistics (see second excel document down).

As the graph below demonstrates, at no point during the Labour government was unemployment anywhere close to 30 per cent. On average over the entire government it was 6 per cent for people aged 16-64. At its highest between March-May 2010 it was 8.1 per cent.

If this is the case, where did Ms Smith get this figure from?

Is it possible that the Economic Secretary to the Treasury has conflated the unemployment rate with the economic inactivity rate.

Over the course of the last Parliament this fluctuated between 22.7 and 23.9 per cent, closer to the figure quoted by Ms Smith.

It should be stressed that these are two separate groups with different ONS definitions, and that the unemployed rate is not included as part of those considered economically inactive.

A person who is unemployed is defined as both able and ready to work, and is actively looking for a position.

An economically inactive person is someone who is either unable or unwilling to look for work. This category includes the long-term disabled, students and pensioners.

As such, it is inaccurate to refer to those who are economically inactive as being unemployed.

Conclusion

Chloe Smith is incorrect to claim that the unemployment rate under the previous Labour government was 30 per cent. The average rate of unemployment was only 6 per cent, and was 8.3 per cent at its peak.

It is possible that she has arrived at the figure by conflating it with the inactivity rate. As this category is distinct and separate from unemployment figures it is misleading.

Full Fact will be contacting the Treasury to ask that the apparent error is corrected in the parliamentary record.