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| UK unemployment falls 57,000 to 2.51m, official data shows | UK unemployment falls 57,000 to 2.51m, official data shows |
| (2 months later) | |
| The number of people claiming unemployment benefit dropped by 21,200 in June, the fastest rate of decline in three years. The fall, which was far higher than City predictions, boosted hopes of a fragile recovery, although a record high in long-term joblessness underscored the human cost of the recession. | The number of people claiming unemployment benefit dropped by 21,200 in June, the fastest rate of decline in three years. The fall, which was far higher than City predictions, boosted hopes of a fragile recovery, although a record high in long-term joblessness underscored the human cost of the recession. |
| Official data released on Wednesday showed that unemployment in the UK had fallen by 57,000 since December, leaving a total of 2.51 million out of work, or 7.8% of the labour force. | Official data released on Wednesday showed that unemployment in the UK had fallen by 57,000 since December, leaving a total of 2.51 million out of work, or 7.8% of the labour force. |
| The fall in the numbers claiming jobseeker's allowance surprised economists, who had been expecting a more modest decline of 8,000. The number of economically inactive people, those classified as not looking for work, increased by 87,000 to reach 9 million. | The fall in the numbers claiming jobseeker's allowance surprised economists, who had been expecting a more modest decline of 8,000. The number of economically inactive people, those classified as not looking for work, increased by 87,000 to reach 9 million. |
| Long-term unemployment hit a 17-year high, as the number of people who have been out of work for more than a year increased by 32,000 to reach 915,000. Of those, just over half (474,000) have been searching for work for more than two years, the highest figure since 1997. | Long-term unemployment hit a 17-year high, as the number of people who have been out of work for more than a year increased by 32,000 to reach 915,000. Of those, just over half (474,000) have been searching for work for more than two years, the highest figure since 1997. |
| The data showed that workers were continuing to feel the pinch. Wages continue to lag behind inflation, with average weekly earnings (excluding bonus payments) over March to May 1% higher than the same time last year, while the consumer price index was running at 2.9%. | The data showed that workers were continuing to feel the pinch. Wages continue to lag behind inflation, with average weekly earnings (excluding bonus payments) over March to May 1% higher than the same time last year, while the consumer price index was running at 2.9%. |
| The prime minister, David Cameron, tweeted that the figures were "encouraging news" and the TUC also said the data showed "some welcome small improvements". However, the TUC general secretary, Frances O'Grady, said Britain's labour market remained a long way off a strong recovery. "Long-term unemployment is at a 17-year high and youth unemployment remains at crisis levels. Those in work are continuing to see the value of their wages pushed down by inflation, as the biggest squeeze in living standards for over a century continues. In some regions unemployment is still rising," she said. | The prime minister, David Cameron, tweeted that the figures were "encouraging news" and the TUC also said the data showed "some welcome small improvements". However, the TUC general secretary, Frances O'Grady, said Britain's labour market remained a long way off a strong recovery. "Long-term unemployment is at a 17-year high and youth unemployment remains at crisis levels. Those in work are continuing to see the value of their wages pushed down by inflation, as the biggest squeeze in living standards for over a century continues. In some regions unemployment is still rising," she said. |
| Howard Archer, chief UK and European economist of IHS Global Insight, said the labour market was benefiting from an apparent pickup in economic activity and growing business confidence, but "muted" wage growth meant consumer spending was unlikely to pick up in the short term. | Howard Archer, chief UK and European economist of IHS Global Insight, said the labour market was benefiting from an apparent pickup in economic activity and growing business confidence, but "muted" wage growth meant consumer spending was unlikely to pick up in the short term. |
| "We are becoming more hopeful about job prospects. While we doubt that the economy will be able to sustain the significantly improved growth rate that was likely achieved in the second quarter [when economists estimate the economy grew at 0.6%], we do expect clear growth to continue and business confidence to be firmer." | "We are becoming more hopeful about job prospects. While we doubt that the economy will be able to sustain the significantly improved growth rate that was likely achieved in the second quarter [when economists estimate the economy grew at 0.6%], we do expect clear growth to continue and business confidence to be firmer." |
| The number of people working in the private sector rose 544,000 in the year to March 2013, while public sector employees fell by 112,000 over the same period. | The number of people working in the private sector rose 544,000 in the year to March 2013, while public sector employees fell by 112,000 over the same period. |
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