London: The number of people claiming unemployment benefit in the UK dropped by 21,200 in June, the fastest rate of decline for three years. The fall boosted hopes of a fragile economic recovery, though a renewed rise in the rate of long-term joblessness underscored the human cost of the recession.
The fall in the numbers claiming jobseeker’s allowance surprised economists, who expected a more modest decline of 8,000. The Office for National Statistics (ONS) also revised up May’s decline, to 16,200.
The number of economically inactive people in Britain — those classified as not looking for work — increased by 87,000 to reach nine million. On the International Labour Organisation measure, which is published with more of a time lag, the ONS said Britain’s unemployment total, between March and May, was 57,000 lower than the previous three months, leaving 2.51 million people, or 7.8 percent of the labour force, out of work.
Long-term unemployment hit a 17-year high, as the numbers who had been out of work for more than a year rose by 32,000 to reach 915,000. Of those, just 474,000 had been searching for work for more than two years, the highest figure since 1997.
Wages lagged behind inflation, with average weekly earnings (excluding bonuses) over March to May 1 percent higher than the same time last year, while the consumer price index ran at 2.9 percent. Allan Monks, of JP Morgan, said: “Average earnings rose significantly in April, and maintained this level in May. The news from the claimant count is that employment growth is strengthening again.”
The prime minister, David Cameron, tweeted that the figures were “encouraging news”.
The Trades Union Congress (TUC) said the data showed “some welcome small improvements”. However, the TUC’s general secretary, Frances O’Grady, said Britain’s labour market remained a long way off strong recovery. “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.Guardian News
