UK unemployment rate falls to 6.8%

Written By Unknown on Rabu, 14 Mei 2014 | 16.50

14 May 2014 Last updated at 10:30

The number of people out of work in the UK fell by 133,000 to a fresh five-year low of 2.2 million in the three months to March, official figures indicate.

The unemployment rate now stands at 6.8% of the workforce, the Office for National Statistics (ONS) said.

The number of people in employment rose to 30.43 million, the highest since records began in 1971.

Average earnings were unchanged, with pay in the three months to March up 1.7% from a year earlier.

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The jobs market continues to grow much more rapidly than most people expected.

The 2.2 million jobless total is the lowest since early 2009. So, too, the youth unemployment figure.

The number of vacancies in the economy is at its highest since the spring of 2008, before the full effects of the recession had taken hold.

The fact that self-employment accounted for 183,000 of the 283,000 of the increase in total employment over the latest quarter has raised eyebrows.

The majority of these were full-time, but questions can be asked about how many of this number were working for themselves by necessity after losing a job elsewhere.

A rise in self-employment could also point to a more entrepreneurial spirit, which will reap dividends in later years.

In all, 283,000 more people found work, which was the largest quarterly increase since records began in 1971.

The increase was helped by a rise in the number of people working for themselves. Self-employment reached a record high of 4.5 million, with the number of people working for themselves jumping by 183,000 in the quarter to March, compared with a rise of 375,000 over the past year.

The number of people claiming Jobseeker's Allowance in April fell by 25,100 to 1.12 million.

And the number of unemployed 16 to 24-year-olds fell by 48,000 to 868,000 - the lowest figure for five years.

"As the recovery takes hold, more people are able to get a job or set up their own business and become the employers of tomorrow," said Minister for Employment Esther McVey.

Prime Minister David Cameron tweeted: "There's more to do, but it's welcome unemployment is down again. More jobs means more financial security for people."

However, Jeremy Cook, chief economist at the currency company, World First, said the fact that average earnings were unchanged was disappointing.

"[This] outweighs any positive sentiment coming from the fall in the overall rate of unemployment to 6.8%," he said.


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