The quiet before the storm

The September unemployment count surprised analysts, showing the 11th monthly fall in succession.

The number of unemployed claimants dropped by 4,900 to 942,100, but the unemployment rate remained at 3.1%. There were 719,300 unemployed men (a 4.4% rate) and 222,800 women (a 1.6% rate). Unemployment is now at its lowest rate for 26 years.

However, a number of job cuts were announced as companies tightened their belts in the wake of the World Trade Centre attack. Some of the biggest cuts were at airlines, with both British Airways and Virgin Atlantic reducing staff numbers (see page 9)

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

Under the government's preferred measure - the International Labour Organisation (ILO) count - UK unemployment did rise by 53,000 to 1,507,000 in the three months to August compared to the previous three months. The unemployment rate was 5.1%.

TUC general secretary John Monks said: "These figures do not take

account of the economic impact of the attacks of 11 September. We fear worse to come."