UK Unemployment Falls To 2.47

UK Unemployment Falls To 2.47:It took the unemployment rate 7,8%, the lowest for the year, the Office for National Statistics (ONS) said.
The number of people in work increased by 160,000 during the three months to May, the biggest increase since August 2006.
Nevertheless, the growth was associated with a record 148,000 increase in part-time workers, while full-time employment increased by only 12000.
The ONS said the percentage of workers employed part-time workers was 27%, the highest since the beginning of registration in 1992.
The increase in unemployment and employment may in part explain the decrease in the number of people classed as economically inactive.
This decline - the first time in more than a year - shows that people are returning to the labor market, either as employees or job hunting, after a period of not seeking work.
There was also an increase in the number of people unemployed for more than one year. She rose to 787,000, the level not seen since 1997.
And while the UK saw the total 0.1% fall in the unemployment rate, the number of unemployed rose in Scotland (0.3%), Wales (0.1%) and Northern Ireland (0,6%). UK figures have raised expectations that economic recovery is gaining momentum. While some experts say that unemployment may start rising again towards the end of next year.
Andrew Sentance, a member of the Bank of England monetary policy committee, said in a speech Tuesday that the labor market has stabilized.

Data Bank of England's agents and the latest employment survey is that the labor market in the UK is stabilized, and that the demand for labor in the private sector may have already started to pick up. "
David Tinsley, economist at National Australia Bank in London and a former Bank of England official, agreed that the rise in unemployment came to an end - for now.
"It can pick up next year. It is hard to imagine how the steady pace of improvement will be maintained as a public sector job losses are beginning to bite."
Vicky Redwood, of Capital Economics, also was concerned about the future trend of decrease. "We still doubt that the private sector hiring will pick up strongly enough to compensate for the severe reduction of public sector jobs," she said.
In the UK unemployment rate compares with 10% in the euro area, 9.5% in the U.S. and 5,2% in Japan, the report showed the ONS. This content requires Flash Player version 9 (version installed: 8.0.22) Pay increases slow
Those claiming unemployment benefit fell in June to 20 800 1460 000, ONS figures showed.
Meanwhile, the ONS said that wage growth eased sharply three months to May, and the average weekly earnings growth falling to 2.7% from 4.1% during the three months to April.
Stephanie Flanders, economics editor of the BBC, said: "The bottom line is that UK households are still seeing a significant squeeze in life, as a result of the financial crisis, even though more people than expected to find gainful employment.
And, lest we forget, to squeeze out higher taxes and lower public spending has hardly started, "she said

UK Unemployment Falls To 2.47