UK unemployment falls by 33,000 in final quarter of 2009

Unemployment in the UK fell by 33,000 in the three months to January, with the jobless rate standing at 7.8 per cent, official figures have revealed.

Total unemployment stood at 2.45 million, the Office for National Statistics (ONS) said, but long-term unemployment rose.

The number of people claiming jobseeker's allowance fell by 32,300 last month, to 1.59 million, which the ONS noted was the biggest monthly fall since 1997.

However, there was bad news for the long-term unemployed, who increased by 61,000 over the final quarter of 2009, to 687,000.

Commenting on the figures, employment minister Jim Knight said: "While it's good news that the number of young people claiming unemployment benefit has fallen for the fourth month in a row, there is no let up in our investment to ensure every young jobseeker gets the chance to find work and make a future for themselves."

The statistics also showed that the number of 18-24-year-olds claiming Jobseeker's Allowance fell for the fourth consecutive month.

Yvette Cooper, secretary of state for work and pensions, added: "The fall in unemployment for the third month in a row is very welcome, but we should remain cautious. We're not out of the woods yet and we are still determined to do more to support jobs and help the unemployed this year."

Today the government announced funding for almost 7,000 jobs for 18-24-year-olds under the Future Jobs Fund, bringing the total so far up to 117,000. The new positions include jobs as sports coaches, youth workers, solar panel installers, housing and classroom assistants.

Howard Archer chief UK and European economist at IHS Global Insight commented on today's figures: "We believe that it is premature to sound the all-clear on the jobs front. In fact, we suspect the labour market may well be somewhat erratic in the near term at least, with some months of unemployment gains and some of losses.

"There remains the risk that unless the economy gains significant momentum in the near term, a significant number of firms may well decide that they really cannot hold on to some of their workers any longer. In addition, significant job cuts in the public sector could well start later this year as part of the efforts to rein in government expenditure."