Jobless total falls to lowest since July 2008

UK unemployment has fallen to its lowest rate since July 2008, official figures have shown.

 

The number of jobless people dropped by 76,000 to 1.84 million in the three months to February, the Office for National Statistics said on Friday. 

That means the unemployment rate has fallen to 5.6%, in line with forecasts.

Average weekly earnings in the three months to February, excluding bonuses, rose by 1.8% compared with the same period a year earlier.

Growth was slightly lower than the rate in January. When bonuses are included, weekly earnings rose by 1.7%.

The number of people claiming Jobseeker's Allowance in March fell by 20,700 to 772,400, the ONS said.

Martin Beck, senior economic advisor to the EY ITEM Club, said: "The story of the UK labour market has long been a 'jobs-rich' but 'pay-poor' one. The latest numbers are no exception with good news for those looking for work, but less so for those already in employment."

Samuel Tombs, senior UK economist at Capital Economics, said the UK's "employment miracle shows no signs of drawing to a close" and expected the jobless rate to continue falling further in the coming months.

Sterling rose by 0.6% to $1.5036 against a weaker US dollar - its highest for almost a month - after the jobs data was released. 

Employment rose 248,000 to 31.05 million - the biggest increase in a three-month period since April 2014.

The number of 16 to 24-year-olds out of work fell by 22,000 in the three months to February to 742,000.

'Question marks'

In England, the South East had the lowest unemployment rate at 4.2% while the North East was highest on 7.7%.

The rate in Scotland and Northern Ireland stood at 6%, and 6.2% in Wales. 

Chris Williamson, chief economist at Markit, said: "The boost to spending power from the rise in real pay appears to be a big factor behind the country's ongoing economic upturn in recent months, as households take advantage of lower prices. However, there are question marks over how long this boost to consumer spending power will last."