BRITAIN'S jobless rate fell for the fifth consecutive month in July to reach a five year low after 24,100 people stopped claiming unemployment benefit, official figures showed on Wednesday.

The Office for National Statistics (ONS) said the unemployment rate fell, to 7.6 per cent of the workforce from 7.7 per cent in June, surprising analysts who had expected a much smaller decline. But other figures released on Wednesday showed that average earnings soared in the year to June and there was a huge increase in the number of days lost through industrial disputes across Britain.

In addition, the main opposition Labour Party published a study which showed that the number of part time workers who were unable to find a permanent job had increased by 50 per cent in the four years since 1992.

But he added that the "ONS now estimate that unemployment is on an underlying downward trend averaging around 15,000 a month."