Unemployment hits seven-year high

Unemployment is at its highest level since 1999. Under the Labour Force Survey (LFS) count it was up by 27,000 to 1.7 million in the quarter to September 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 up to 5.6% from 5.5% in the previous quarter. There were 984,000 unemployed men under the count - a 6.0% rate - and 716,000 women - a 5.1% rate.

Unemployment under the claimant count is at its highest since May 2001. Under this count, which only includes those drawing Jobseeker's Allowance, unemployment rose by 1,200 to 961,300 in October from a revised figure of 960,100 in September.

The unemployment rate under this count was steady at 3.0%. The number of unemployed men on benefit was down to 705,800 (a 4.1% rate), but the number of unemployed women rose to 255,500 (a 1.7% rate).

Manufacturing jobs continue to decline to the 3 million mark. There were 3.03 million employee jobs in the quarter to September - down by 77,000 or 2.5% on a year earlier.

With inflation steady, the expectation of another rise in interest rates on top of the quarter percentage point rise last month is receding. Interest rates at 5.0% are now at a five-year high.