According to the Office for National Statistics a 49,000 drop has taken the UK to its lowest unemployment level for over twelve months.
In the third quarter the jobless rate slid from 7.9 per cent to 7.8 after unemployment fell to 2.51 million – 110,000 lower than for the same period last year.
Much of the decline can be attributed to a decrease in youth unemployment – despite the jobless rate for people within the 16-24 age bracket remaining at 963,000.
The statistics also revealed a 100,000 increase in the number of people in work over the July-September period, taking the total to just below 30 million.
Female unemployment declined by 10,000 whilst male unemployment plummeted by 39,000. Meanwhile, the number of people in part-time employment rose to 8.1 million, an increase of 49,000 and almost a record high.
It wasn’t all good news however. Further ONS figures revealed a 12,000 jump in long-term unemployment (unemployment which extends beyond a year) and a 21,000 surge in the amount of people who have been out of work for more than two years.
UK jobless claims also increased at the most rapid pace seen for over a year despite economists forecasting no change. A 10,100 rise in jobless benefit claims took October’s figure to 1.58 million.
Additionally, it appears that the ‘Olympics effect’ is coming to an end. Workers hired temporarily for the Olympics probably accounted for a proportion of the 2,900 increase in jobless claims in London.
Some industry experts consider these latest figures as hinting at faltering in the labour market.
Howard Archer, an economist with London based IHS Global Insight commented: ‘While we expect the economy to eke out modest growth over the coming months, we doubt it will be strong enough to prevent unemployment moving up, especially as public-sector jobs will continue to be pared. Latest survey evidence indicates that companies are currently cautious in their employment plans.’
As of 10:40 am
The Pound to Euro exchange rate is currently trading at 1.2447
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The Euro to US Dollar exchange rate is currently trading at 1.2746
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