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Sharp fall brings jobless total close to Bank figure that heralds interest rate increase
Unemployment rate drops to 7.1% as record-high numbers enter into work
(35 minutes later)
Unemployment has fallen to 7.1 per cent - within touching distance of the figure which will be used to decide whether interest rates will increase, official data have revealed.
The UK unemployment rate has seen one of the biggest drops ever recorded, falling to 7.1 per cent and bringing it within touching distance of the Bank of England’s interest rate landmark.
The number of jobless people plunged by 167,000 in the quarter to November - the second biggest fall on record - to 2.32 million, the lowest for almost five years.
Official statistics showed that the number of people not in work fell by 167,000 in the three months up to November, taking the total to 2.32 million – the lowest for almost five years.
The Bank of England's monetary policy committee (MPC) has said it will not lift interest rates above their historically-low level of 0.5 per cent until the unemployment rate drops to 7 per cent.
More than 280,000 people entered employment in the period, which David Cameron hailed as the “biggest quarterly increase in employment” ever recorded.
Analysts had not expected the threshold to be reached until later in the year, although the Bank has stressed a figure of 7 per cent will not automatically trigger an interest rate rise.
The Prime Minister tweeted: “More jobs means more security, peace of mind and opportunity for the British people.”
The new unemployment rate of 7.1 per cent is down by 0.5 per cent from June-August, and by 0.6 per cent from a year earlier.
But the good news could soon trigger a rise in interest rates, after the Bank of England said it would hold them at a record low level of 0.5 per cent until unemployment dropped to 7 per cent.
The quarterly fall of 167,000 is the biggest since the autumn of 1997 and the second largest since records began in 1971.
Analysts had not anticipated that threshold to be reached until later in the year – though the bank’s governor Mark Carney has previously stressed it was not an automatic process, and that he would have to approve an interest rate rise first.
The number of people claiming jobseeker's allowance in December fell by 24,000 to 1.25 million, the lowest figure for almost five years.
The Bank of England says a figure of 7 per cent will not automatically trigger an interest rate rise
The so-called claimant count has now fallen for 14 months in a row.
Meanwhile, the number of people in work has reached a record high of just over 30 million, giving an employment rate of 72.1 per cent, an increase of 0.5 per cent over the quarter to November.
The Bank of England: Analysts had not expected the threshold to be reached until later in the year, although the Bank has stressed a figure of 7 per cent will not automatically trigger an interest rate rise
An additional 280,000 people were in employment over the latest quarter compared to the three months to August, and up by 450,000 from a year earlier.
The new unemployment rate of 7.1 per cent is down by 0.5 per cent compared to June-August, and by 0.6 per cent year on year.
There was a fall in the number of people working part-time because they could not find full-time jobs - down by 12,000 to 1.4 million.
The number of people claiming jobseeker's allowance in December fell by 24,000 to 1.25 million, the lowest figure for almost five years – and the so-called “claimant count” has now fallen for 14 months in a row.
Economic inactivity - counting those who are looking after a relative, on long-term sick leave or who have given up looking for work - fell by 22,000 to just under nine million.
The record rise in the number of people in work has seen the total reach just over 30 million, its highest ever. There was also a fall in the number of people working part-time because they could not find full-time jobs - down by 12,000 to 1.4 million.
Average earnings increased by 0.9 per cent in the year to November, unchanged from the previous month, giving a weekly wage of £475, today's report from the Office for National Statistics showed.
Employment Minister Esther McVey said: “Creating jobs and getting people into employment are central to our economic plan to build a stronger, more competitive economy, so it is very encouraging news that we've seen a record-breaking rise in employment over the last three months - the largest ever.
Long-term unemployment has fallen - down by 61,000 to 839,000 among those out of work for over a year.
Rachel Reeves, the shadow Work and Pensions Secretary, said the fall in unemployment was “welcome” but still doesn’t solve the country’s “cost-of-living crisis”.
The number of unemployed 16 to 24-year-olds fell by 39,000 to 920,000.
“These figures also show prices are still rising more than twice as fast as wages which means working people are over £1,600 a year worse off on average under this out-of-touch Government,” she said.
Employment Minister Esther McVey said: "Creating jobs and getting people into employment are central to our economic plan to build a stronger, more competitive economy, so it is very encouraging news that we've seen a record-breaking rise in employment over the last three months - the largest ever.
"With the highest quarterly fall in unemployment since 1997, it's clear that the Government's long-term economic plan to get people off benefits and into work so they can secure their future is proving successful."
Prime Minister David Cameron said on Twitter: "The biggest quarterly increase in employment on record. More jobs means more security, peace of mind and opportunity for the British people."
Wales's First Minister Carwyn Jones said: "Today's figures are particularly positive for Wales, with employment levels at an historic high and economic inactivity at a record low.
"Wales is outperforming the UK as a whole in crucial areas such as youth employment, where unemployment amongst the 16-17-year-old and 18-24-year-old groups is falling faster in Wales than across other parts of the UK."
