This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6175273.stm
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Unemployment falls to 1.7 million | Unemployment falls to 1.7 million |
| (40 minutes later) | |
| Unemployment in the UK fell by 7,000 to 1.7 million in the August to October period, according to official figures. | |
| The drop left Britain's jobless rate unchanged at 5.5%, the Office for National Statistics (ONS) reported. | |
| The number of people out of work and claiming benefit also dropped by 5,700 in November to 950,800 - its sharpest fall since January 2005. | The number of people out of work and claiming benefit also dropped by 5,700 in November to 950,800 - its sharpest fall since January 2005. |
| The data suggests the labour market is in better shape than many had thought, and could point to further rate rises. | The data suggests the labour market is in better shape than many had thought, and could point to further rate rises. |
| The Bank of England last week kept interest rates on hold at 5%, but many analysts predict that the cost of borrowing could rise again early next year. | The Bank of England last week kept interest rates on hold at 5%, but many analysts predict that the cost of borrowing could rise again early next year. |
| Expectations of a quarter point rise in interest rates were further fuelled on Tuesday, after the key Consumer Price Index measure of inflation rose to a near-decade high of 2.7%. | |
| 'Heightened fears' | |
| The fall in unemployment reflects a modest rise in the labour force rather than rapid job creation Geoffrey Dicks, Royal Bank of Scotland UK economist | |
| Separately, the ONS said average earnings in the three months to October rose by 4.1% compared with a year ago, up from 3.9% in the three months to September. | Separately, the ONS said average earnings in the three months to October rose by 4.1% compared with a year ago, up from 3.9% in the three months to September. |
| The rise in earnings during the quarter was largely driven by private sector services, the ONS said. | |
| Geoffrey Dicks, UK economist at Royal Bank of Scotland, said the labour market figures were "slightly stronger than the market expected". | |
| "The fall in unemployment reflects a modest rise in the labour force rather than rapid job creation," he said. | |
| "The rise in earnings simply unwinds the previous month's decline and leaves earnings growth very much in the range that it has been in all year. | |
| "Still, with heightened fears of a wage response to the pick-up in price inflation, any increase is bound to increase speculation of a February rate hike." | |
| Employment minister Jim Murphy welcomed the latest unemployment figures, and said they showed "welfare reform in action". | |
| "These figures paint an encouraging picture," he said. "The UK already has the highest employment rate in the G8, but we need to go further still." |