Jobless numbers down again

Unemployment Lowest for Seven Years

These latest statistics show the sixteenth consecutive fall in the seasonally adjusted total, now at its lowest level since April 1990. Unadjusted unemployment fell by 70,355 last month to 1,550,141 - 5.5% of the workforce, according to figures released today by the Office for National Statistics.

Male unemployment fell by 27,800 last month while 8,700 women left the register, with the biggest reductions in London, the south-east, north-west England and the West Midlands.

The ONS said the figures confirmed continuing growth in the labour market, with employment rising at between 25,000 and 40,000 a month while unemployment is falling at between 20,000 and 35,000 a month.

The number of claimants is now 550,000 lower than a year ago. The quarterly Labour Force Survey to May - based on a wider measure of unemployment by the International Labour Organisation - showed a 74,000 fall in the number out of work and an increase of 91,000 in employment. According to the ILO measure, unemployment was over two million in spring 1997.

On the pay front, the increase in average earnings in the year to May fell back by 0.25% to 4.25% compared with the previous month.

TUC general secretary John Monks welcomed the fall in unemployment but added: "The high value of the pound and interest rates put a question mark over hundreds of thousands of manufacturing jobs in the future. In addition, there are worrying reports of skills shortages."

Other figures published today showed a record 282,400 stock of vacancies held at Jobcentres last month, although notifications of new vacancies actually fell by 14,300 over the month. The number of days lost through industrial disputes was provisionally estimated at 37,000 in May, down by 10,000 on the previous month.

The minutes relate to the meeting held on June 6, when interest rates were raised by 0.25% to 6.5%.