New figures show that the number of UK jobless has fallen to its lowest level since 2008. The figures mark yet another milestone to the end of a year-on-year rise in unemployment since the start of the recession.
According to the Office for National Statistics (ONS), the number of jobless fell by 146,000 to 2.02 million over the last quarter, whilst people claiming Jobseeker’s Allowance fell below one million for the first time in the same period.
The findings also show a marked drop in the number of jobless 16-to-24 year olds, an age group which has notoriously suffered. Unemployment figures for this age group dropped by 106,000 to 747,000.
“These were the largest quarterly and annual falls in youth unemployment since comparable records began in 1992,” the ONS said.
Responding to the figures, Chancellor George Osborne said: “Today’s employment stats mark another step towards full employment. But there is still much more to do.”
However, average weekly earnings still lag behind inflation. Excluding bonuses, average earnings rose by 0.7%, whilst the current rate of inflation remains at 1.5%.
In response to the published figures, Stephen Timms, Labour’s Shadow Employment Minister, said: “Today’s fall in overall unemployment is welcome, but the new figures have shown working people are seeing their pay falling far behind the cost of living.
“Pay excluding bonuses today is the lowest on record.”
Recent commentators have suggested that the Bank of England is unlikely to raise interest rates in the immediate future, with average wage growth applying limited pressure.
However, Howard Archer, chief UK and European economist at IHS Global Insight, said: “The further marked fall in unemployment points to a still rapidly tightening labour market, thereby seemingly boosting the case for an interest hike sooner rather than later by the Bank of England.”
