UK economy recovering as unemployment falls

UK economy recovering as unemployment falls.

The Office for National Statistics in London announced today that in June, UK unemployment claims fell at their fastest pace in three years, adding to evidence that the economic recovery is indeed gaining momentum.

Whilst Economists had forecast a decline of 8,000 unemployment claims, data showed that there was a 21,200 drop in June, from a month earlier, 1.48 million – the biggest drop since June 2010.

Moreover, as measured by International Labour Organisation standards, unemployment fell 57,000 to 2.51 million in the three months through May. The UK unemployment rate was however unchanged at 7.8%.

Experts commented that the figures provide a further boost to Prime Minister David Cameron, whose Conservative Party has gained in opinion polls as the economy improves, as the general election is now less than two years away.

Economist Philip Shaw said that, “The labour market numbers are positive and reflect the favorable part of the economy in the first half”. However, he then added that with pay growth running so far below inflation, there is ‘still a question mark over the recovery’.



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