Unemployment begins to drop

Unemployment has fallen for the first time in nine months. Under the Labour Force Survey (LFS) count it was down by 7,000 to 1.7 million in the three months to October compared with the previous quarter. The LFS count is the government's preferred measure and includes people not eligible for benefits. The unemployment rate was steady at 5.5% on the three months to July.

There were 979,000 unemployed men under the count - a 5.9% rate - and 716,000 women - a 5.1% rate.

Unemployment under the claimant count, which only includes those drawing Jobseeker's Allowance, also fell by 5,700 to 950,800.

The unemployment rate under this count was steady at 3.0%. The number of unemployed men on benefit was down to 697,800 (a 4.1% rate), and the number of unemployed women was down to 253,000 (a 1.7% rate).

TUC general secretary Brendan Barber gave a cautious welcome to the job figures but said it was still "too early to say whether the fall in unemployment is a blip or the start of a trend."

The manufacturing sector continues to lose jobs with 77,000 lost in the quarter to September on a year earlier and they now number just 3.03 million.