Wednesday, July 13, 2011

UK unemployment level falls again

UK unemployment fell 26,000 in the three months to May to 2.45 million, official figures show.
Job Centre sign
 
The unemployment rate was 7.7%, according to the Office for National Statistics (ONS), down from 7.8% in the previous quarter.
However, the number of people claiming Jobseeker's Allowance in June rose by 24,500 to 1.52 million - the biggest such increase in two years.
It follows an upwardly-revised 22,500 rise in the claimant count for May.
Benefit changes The total number claiming unemployment benefits reached its highest level since March 2010, while the claimant count rate held steady at 4.7%.
It is the second month that the claimant count has risen while the unemployment total - which is based on a separate survey - has fallen.
The ONS said part of the discrepancy between the two measures was due to an increase in the number of women claiming Jobseeker's Allowance due to changes in the benefits system.
"It's still difficult to assess where the labour market is overall," said Victoria Cadman, economist at Investec, adding that the employment figures were reassuring.
The total number in employment rose 50,000 versus the previous quarter to 29.28 million - the highest total in more than two years.
The number of long-term unemployed fell by 37,000, partly offset by an 11,000 increase in the number of people out of work for less than a year.
Joblessness amongst 16 to 24-year-olds fell by 42,000.
The employment report also indicated that the number of new jobs in the private sector was outstripping government job losses.
The public sector workforce shed 24,000 during the three months to May, far less than the 104,000 new positions created by the private sector.
Average earnings, excluding bonuses, rose a faster-than-expected 2.1% in the three months to May, although this was still well short of the inflation rate.
On Tuesday, the ONS reported consumer prices inflation of 4.2% in June.

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