The number of Britons in work has reached a record high indicating that the nation is on the right track to a return to growth and the end of the double dip recession.
According to the Office for National Statistics (ONS) the number of people out of work fell by 50,000 to 2.53 million in the three months to August. The total number of people in work rose to 30 million causing the overall unemployment rate to fall to 7.9%, down from 8.1% in the previous three-month period.
The figures defied analyst expectations who had been expecting the figure to remain the same. The employment level rose to 29.590 million, the highest since records began in January-March 1971.
The ONS also revealed that the number of people claiming jobseekers allowance has fallen by 4,000 to 1.57 million in September. The number of people unemployed aged 16 to 24 fell by 62,000 to 957,000. This figure also includes the 298,000 unemployed young people in full time education.
The figures will be a huge boost to Prime Minister David Cameron and his under fire government but will also add a sense of confusion to the markets. The Bank of England is struggling to get its policies right as it contends with what economists call the ‘productivity puzzle’. The UK economy continues to create jobs despite its slide into recession, suggesting that the data compilers are either getting their facts wrong or some just don’t have a clue what is going on.
Some are citing the fall in unemployment to the Olympic Games with almost half of the new jobs created in the three- month period being made in London showing at the disparity of jobs being made in the rest of the country. The figures are also not as clear cut as they appear with most of the fall in unemployment may be down to job seekers being sent on training courses or apprenticeships and therefore being removed from the unemployed figures temporarily.
As a result of the news the Pound has made gains against the majority of its most traded peers gaining 0.22% against the Euro and 0.17% against the US Dollar.
As of 10.10 am:
The Pound to Euro exchange rate is currently trading at 1.2332
The Pound to US Dollar exchange rate is currently trading at 1.6152
The Pound to Australian Dollar exchange rate is currently trading at 1.5662
The Euro to US Dollar exchange rate is currently trading at 1.3098
The Euro to Pound exchange rate is currently trading at 0.8108
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