Unemployment falls to 2.47m

The number of people unemployed in the UK declined by 8,000 to 2.47 million in the last quarter, according to figures released by the Office for National Statistics (ONS).

These figures mean that the overall UK unemployment rate remains at 7.8% but the claimant count - those out of work and receiving unemployment benefit - rose by 2,300 in August to 1.47 million. There are fears that unemployment will increase when the coalition government's spending cuts begin to be felt. "These figures were mixed. While there were some positive developments, particularly a big rise in employment and a fall in inactivity, the number of people working part time because they could not find a full time job, has increased further," said David Kern, chief economist at the British Chambers of Commerce. "There is no room for complacency and the labour market must prepare for the impact on jobs that will result from the government's deficit cutting measures. With this in mind, we reiterate our forecast that UK unemployment is likely to peak at around 2.65 million in the first half of 2012."

Newbusiness.co.uk
Sept 10