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Unemployment rate falls to 7.1% in the UK

Paystream News

Michelle Derungs

Wednesday 29th Jan, 2014

As the UK continues on the steady road to recovery the UK sees jobless rates unexpectedly fall to 7.1%, which is a bigger drop than economists forecast. In the upcoming three months to November 2013 unemployment rates fell from 7.4% to 7.1% with many only forecasting to see a modest fall to 7.3% at most.

The job surge was the largest ever quarterly increase in employment, with the figure of those jobless decreasing by 167,000 between September to November 2013 to an unexpected low of 2.32 million. It was estimated that a grand total of 280,000 jobs were created in that three month period.

The Office for National Statistics (ONS) claimed there to a be a total of 30.15 million individuals now in employment, with those claiming job seekers allowance down by 24,000 to just 1.25 million. The change in employment figures is not the only factor that has altered in recent months, with average earnings said to have increased by 0.9% in the year up to November.

The decrease in unemployment figures forecasts a brighter future for 2014 however, this can bring many unforeseen changes. When the unemployment figures fell there was a concern by some, that this could be a trigger for raised interest rates. Nevertheless, fears were eased in a recent speech by Ian McCafferty, a member of the monetary policy committee (MPC), who stated that "The MPC sees no immediate need to increase interest rates even if 7% were to be hit in the near future".
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