UK unemployment falls again in September

UK unemployment figures fell during September by 4,900.

UK unemployment figures fell during September by 4,900.

Analysts had feared the jobless total would rise for the first time this year.

But claimant count unemployment fell to 942,100. It is now at its lowest point for 26 years.

However, unemployment measured by International Labour Organisation (ILO) standards rose between June and August to 1,507,000, up 53,000 on the previous three months.

READ MORE

ILO tries to include those people who are jobless but not claiming benefits.

Last month, a number of job cuts were announced as companies tightened their belts in the wake of the US terror attacks.

Some of the biggest cuts were at airlines, with both British Airways and Virgin Atlantic reducing staff numbers.

These cuts will not have been included in September's figures, which suggests there could be a rise in the jobless total next month.

Mr Simon Rubinsohn, chief economist at Gerrard, says the claimant count figures confound expectations, but he still fears that the labour market is deteriorating.

He said: "Although the claimant count did surprise, we should pay more attention to the broader ILO which suggests unemployment is beginning to pick up."

Average earnings rose by 4.5 per cent between June and August, down 0.1 per cent on the previous quarter.

PA