UK unemployment total falls again

13 July 2011 Last updated at 11:44 GMT The number claiming Jobseeker's Allowance jumped by over 20,000 for the second month running UK unemployment fell 26,000 in the three months to May to 2.45 million, official figures show.

The unemployment rate was 7.7%, according to the Office for National Statistics (ONS), down from 7.8% in the previous quarter.

However, the number of people claiming Jobseeker's Allowance in June rose by 24,500 to 1.52 million - the biggest such increase in two years.

It follows an upwardly-revised 22,500 rise in the claimant count for May.

Benefit changes

The total number claiming unemployment benefits reached its highest level since March 2010, while the claimant count rate held steady at 4.7%.

It is the second month in a row that the claimant count has risen while the unemployment total - which is based on a separate survey - has fallen.

The ONS said part of the discrepancy between the two measures was due to an increase in the number of women claiming Jobseeker's Allowance due to changes in the benefits system.

The employment report said that the number of long-term unemployed fell by 37,000, although there was also an 11,000 increase in the number of people out of work for less than a year.

The number of 16 to 24-year-olds out of work fell by 42,000.

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There are parts of London and Scotland where around 30 dole claimants are chasing every vacancy”

End Quote Brendan Barber TUC general secretary Many economists look at the claimant count as a more current indicator of the health of the labour market.

"While [the unemployment survey] data suggest some tentative improvement... more up-to-date information suggests that weakness lies ahead," said Chris Williamson, economist at research firm Markit.

"The number of job vacancies... fell by 7,000 between the first and second quarters of the year, and Markit's recent survey of recruitment consultancies showed that the number of people placed in permanent jobs showed the weakest rise for 22 months in June."

Pay subdued

The total number in employment rose 50,000 versus the previous quarter to 29.28 million - the highest total in more than two years.

Continue reading the main story Hugh Pym Chief economics correspondent, BBC News

There is something for the jobs market optimists and something for the pessimists in these figures. Unemployment has fallen again, including among 16-24 year olds, while total employment is on the increase.

But nearly two-thirds of the increase in employment was due to part time jobs. Vacancies in the economy have fallen - and that excludes census positions.

Optimists will argue that the private sector is at least creating work. Pessimists will question the quality of the jobs created and whether there is a sustainable recovery in the labour market.

Pay also continued to rise at a subdued rate.

Average earnings, excluding bonuses, rose a faster-than-expected 2.1% in the three months to May - well short of the inflation rate, which fell slightly to 4.2% in June.

"It's worth remembering that employment didn't fall nearly as much as expected in the recession, partly because businesses retained staff through short-time working, wage cuts and other mechanisms," said Nigel Meager, director of the Institute for Employment Studies.

"The other side of this coin, however, is that many employers now have the staffing capacity to respond when the economy returns to growth, without hiring new people.

"Given that growth itself is fairly weak, it's unsurprising that the overall labour market remains in an anaemic state, as confirmed by these figures."

Chasing jobs

The employment report indicated that the number of new jobs created in the private sector was still outstripping government job losses.

The public sector workforce shed 24,000 during the three months to May, far less than the 104,000 new positions created by the private sector.

"Today's headline unemployment figures show some encouraging news," said TUC general secretary Brendan Barber.

"However, looking at the data more closely, there are worrying signs for the future."

Besides the rise in the claimant count, he also pointed to "a big jump in the ratio of unemployed people to job vacancies, from a national average of five people chasing each job to 5.4".

"There are parts of London and Scotland where around 30 dole claimants are chasing every vacancy - and in Haringey there are 39 people after every available job."

David Kern, chief economist for the British Chambers of Commerce, agreed that there were causes for concern among the generally positive figures.

These included a rise in the number of economically inactive people, and a new record number of people working part-time because they could not find a full-time job.

"The private sector is willing and able to create jobs, but we must not be complacent," he said.

"It is likely we will see more public sector job cuts in the coming months, and we are expecting unemployment to increase by 150,000 to a peak of 2.6 million over the next 12 to 15 months."

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Nadal ends Murray's hopes again

By Piers Newbery
BBC Sport at Wimbledon Venue: All England Club, LondonDate: 20 June-3 JulyCoverage: Live on BBC One, Two, 3D, HD, Red Button, online (UK only), Radio 5 live, 5 live sports extra; live text commentary from 0900 BST on BBC Sport website (#bbctennis); watch again on iPlayer Nadal beats Murray at Wimbledon

Rafael Nadal ended the Wimbledon hopes of British number one Andy Murray for the second year in a row with a four-set victory in their semi-final.

The defending champion from Spain came through 5-7 6-2 6-2 6-4 and will play Novak Djokovic in Sunday's final.

And while Nadal targets a third Wimbledon and 11th Grand Slam win, Murray is still without a major title.

The Scot has now lost three successive Wimbledon semi-finals, and the wait for a British champion goes on.

Fred Perry remains the last homegrown men's singles champion with his 1936 triumph, and there is every chance that Murray will one day have to find a way past Nadal - one year his senior at 25 - if he is to ever get his hands on the Wimbledon trophy.

Murray had won only four of his previous 15 matches against Nadal, and lost in straight sets at the same stage of Wimbledon last year.

There was an early scare for the Briton when the trainer was called at 2-1 to deliver pain killers as a hip injury appeared to have flared up, but he waved the assistance away when he returned at the next changeover.

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A first half-chance came for Murray at 3-2, 30-30, but he missed with a forehand and it was Nadal who then pressed hard at 5-5, twice getting to deuce in a lengthy game.

A tie-break loomed but Nadal, who came into the match with a lingering foot injury, played a loose game at 5-6 to fall 0-40 down, and gave up the set with a backhand into the net.

The momentum was well and truly with Murray and he had a great chance at 2-1, 15-30, in the second set but fired an inviting mid-court forehand long and it appeared to derail him.

A double-fault gave Nadal a break point in the following game and Murray blazed a smash over the baseline to fall 3-2 behind, before another sloppy service game all but handed over the set.

It might only have been one set all, but Murray's hopes seemed to be hanging in the balance as early as the start of the third and, after saving two break points with a volley and an ace, he missed with a forehand on the third to lose his sixth straight game.

Nadal sympathy for Murray

Nadal was in the groove now and made it seven in a row, clamping down on unforced errors to such an extent that a loose forehand at 3-2 was his first since the opening set.

The Spaniard powered through the rest of the set and tore into Murray at the start of the fourth, ripping a forehand down the line for 15-40 and getting the break when the Briton netted a forehand.

Murray had a lifeline with two break points in game four but Nadal chose the moment to attack the net and volley into the open court, before pummelling his way to safety with some heavy forehands on the second.

Nadal will lose his number one ranking to Djokovic no matter the result of Sunday's final, but he looked supreme as he finished off Murray after nearly three hours and extended his winning run at Wimbledon to 20 matches.

Murray breaks Rafa to win first set

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