Unemployment falls again

Unemployment fell in the latest period on both official counts.

The Labour Force Survey figure - the government's preferred measure which includes people not eligible for benefit - fell by 36,000 to 1,506,000 in the three months to December compared to the previous three months. The unemployment rate fell to 5.1%. There were 885,000 unemployed men (a 5.6% rate) and 621,000 women (a 4.6% rate).

In January 2003, the claimant count fell for the seventh successive month to its lowest level since 1975. The number of people out of work and claiming benefit was down by 3,500 to 928,500 - an unemployment rate of 3.1% of the workforce. The number of unemployed men fell to 699,400 (a 4.3% rate) while the number of unemployed women fell to 229,100 (a 1.7% rate).

Commenting on the figures, TUC general secretary elect Brendan Barber said: "These are reassuring figures at a time of economic uncertainty. With employment growing well, unemployment falling and wage growth remaining non-inflationary, one of the key economic fundamentals is in good shape."

But he added that "the loss of another 10,000 jobs in manufacturing shows how badly the Bank's recent cut in interest rates was needed to help support the sector."