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UK sees unemployment fall, Pound rises

The number of people seeking work in the UK has fallen to 2.56 million according to the latest unemployment figures released by the Office of National Statistics.

The number of people seeking work fell by 46,000 causing the Country’s unemployment rate to fall from 8.2% in the previous quarter to 8.0%. The report shows that the number of people claiming job seeking benefits fell by 5,900 a figure that has taken observers by surprise as they had been expecting a rise of 6,000. The number of people working part-time because they could not find a full-time job hit a record high. It was up 16,000 in the three months to June to 1.42 million, which was the highest figure since records began in 1992.

Youth unemployment remains high even though the number of people out of work in the 16-to-24 age group fell to 1.01million a decrease of 4,000 from the three months to March. The country’s main union the TUC released its own report warning that youth unemployment has hit crisis levels and that the job outlook is at its toughest point since 1994.

The key reason for the sky-high youth unemployment level is the fact that from the late 90’s onwards the government urged all young people to carry on with their education, often embarking on near useless degrees that will be of no use in the real world. The sheer amount of youths at university during those periods allowed the last Labour government to hide the true scale of the number of youths out of work, instead classing them as in ‘full-time’ education and therefore not being added to the jobless figures. Now the government is reaping what it sowed with fewer students choosing to go to university thanks to the hike in tuition fees, more and more are leaving school or college unable to break into the jobs market.

“Students looking to start their careers or continue in their education next month are facing the toughest climate for nearly 20 years,” said the TUC general secretary Brendan Barber.

“It’s particularly worrying that long-term joblessness for young people is still rising, even as overall unemployment falls. If this continues we could lose a generation of talented and highly qualified youngsters to blighted careers, debt and under-achievement.”

Today also saw the release of the Bank of England’s minutes for its monthly meeting. The Banks board voted 0-0 to leave UK interest rates unchanged at 0.5% and was in full agreement about leaving the Quantitative easing programme at £375billion. As a result the Pound rose against the Euro and Dollar.

The Pound to Euro exchange rate is currently trading at 1.272

The Pound to US Dollar exchange rate is currently trading at 1.568

The Pound to Australian Dollar exchange rate is currently trading at 1.497

The Euro to US Dollar exchange rate is currently trading at 1.232

The Euro to Pound exchange rate is currently trading at 0.785

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