Latest data released by the ONS showed that in the three months leading up to the month of July, the number of people out of work dropped by 7000, to a total of 2.59 million unemployed. The rate of unemployment was at 8.1% slightly lower by 0.1% from the previous quarter.
The number of people out of work for more than a year was at 904k, marking the highest figure since 1996.
The Office for National Statistics unemployment report also noted that the number of people seeking unemployment benefits dropped by 15,000 in August, to a total of 1.57 million.
Revised unemployment figures for July showed a bigger drop than the previously announced 13,600.
Employment rate showed a 71.2% rise, up by 0.5% on the quarter with 29.56 million people in work, up by 236k on the quarter.
It is learnt that the Olympic games has helped to drive the drop in unemployment. The city of London alone accounted for 5,500 drop in unemployment in the claimant count indicating that the drop was mostly due to the Olympic games. While in Wales, the unemployment numbers increased by 1000, taking the total jobless number to 132k.
UK Unemployment Chart
UK Unemployment Chart
The UK’s labour market has been resilient in the past and has been under scrutiny as analysts would be looking into signs of weakness in the recession ridden economy. Past employment trends in the country have come out better than expected.
The ONS unemployment report also showed an increase in the number of part time workers by 134k, reaching 8.12 million part time workers in the UK, the highest since 1992. Public sector employment dropped for the 11th consecutive quarter by 235k to a total of 5.7 million.
The London FTSE100 was seen trading modestly higher by 0.32% at 5810.73.
To read the press release from the ONS, click here
