Unemployment up
New official figures show a rise in the level of unemployment.
According the Office for National Statistics (ONS) the unemployment rate increased to 4.8 per cent, from 4.7 per cent the previous quarter. This translates to 27,000 more people unemployed, taking the total jobless figure to 1.44 million.
Though there was a rise in the short term unemployed the number of people unemployed for over 12 months has fallen by 18,000 to 290,000, the lowest figure since comparable records began in 1992.
The ONS suggests that the falling trend in unemployment may now have started to “level off”.
The strength of the economy and the low unemployment is considered one of the Labour Party’s greatest electoral strengths.
Today, however, also contains good news for the Government with another fall reported in the numbers claiming unemployment benefit and a rise in the average number of job vacancies over the three months to July.
The claimant count now stands at the lowest level since July 1975.
The total number of people in employment was also down but the ONS notes that the employment trend is still upwards.
Growth in average earnings was unchanged from last month at 4.2 per cent, excluding bonuses.
The Government said that the figures showed that employment is up 181,000 on the year but there are “fluctuations” from quarter to quarter. Jane Kennedy, Minister for Work, said she believed that the labour market is “continuing to improve”.
“Despite a mixed picture this month, unemployment has fallen over the year to levels not seen since the mid 1970s and vacancies are high and rising,” she said.
“Since 1997 the number of people in work is up by 1.9 million and all parts of the country have benefited. Not only that but a strong economy and successful labour market policies such as the New Deal for Lone Parents have made a real difference for groups who previously lacked the help they needed to prosper in the labour market.”
