Uncategorized
Unemployment holds steady at 7.7%
The Office for National Statistics (ONS) revealed better than expected employment figures as the numbers claiming jobseekers allowance fell by 3,700 in October.
A rise in the claimant count had been expected, but analysts said spending cuts are likely to force the trend upwards again.
The number of people without a job but not claiming benefits fell by 9,000 in Q3 to 2.488 million.
Employment rose by 167,000 to 29.19 million, its highest total since February 2009, according to the figures.
The UK government is expected to cut 490,000 public sector jobs over the next four years as part of an austerity drive to slash the record peacetime budget deficit.
Chancellor, George Osborne is betting the private sector will gear up and create new jobs to help make up for the loss of state jobs.
“Major job losses are on the way in the public sector as the government slashes spending, and we doubt that the private sector will be able to fully compensate for this,” said Howard Archer, an economist at financial forecasting website, IHS Global Insight.