15/02/2006

Unemployment rises to 5.1%

Figures from the Office for National Statistics have revealed that the UK unemployment rate has risen to 5.1%, this is a rise of 0.3% from the previous quarter's figure of 4.8%.

The unemployment level was 1.54 million in the three months to December 2005, up 108,000 from the three months to September 2005 and up 123,000 from a year earlier.

While the number of unemployed people and the unemployment rate have increased, the claimant count has fallen. The number of people in employment fell by 57,000 over the quarter. Employment in the manufacturing sector hit an all time low of 3.09 million in the quarter to December 2005.

Margaret Hodge, Minister for Employment and Welfare Reform, said: "These figures reflect the rather mixed picture of recent months. Employment is up by nearly 200,000 on the year and I am pleased to see the claimant count falling for the first time in a year. However, the rise in ILO unemployment shows the need to continue to be vigilant. Vacancies are also up this quarter and the number of redundancies is down."

"This month's small fall in claimant unemployment is welcome, particularly as latest figures also show continuing reduction in the numbers claiming lone parent and incapacity benefits. Our recent welfare reform green paper sets out the further steps we will take to tackle worklessness, building on the success that has seen the overall numbers claiming out-of-work benefits down by around 1 million in the last eight years," the Minister concluded.

According to the ONS the number of vacancies was 616,800 up 12,100 from the previous quarter.

Growth in average earnings excluding bonuses was unchanged but growth in average earnings including bonuses increased in the quarter.

(SP)

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