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UK unemployment falls to lowest rate in seven years

The number of job vacancies in the UK fell by 5,000 over the last quarter to 736,000, while self-employment has increased by 30,000 to 4.5 million
The number of job vacancies in the UK fell by 5,000 over the last quarter to 736,000, while self-employment has increased by 30,000 to 4.5 million

UK unemployment has fallen by more than 100,000 to its lowest level in over seven years, new figures from the British Office for National Statistics (ONS) have shown.

The jobless total was slashed by 102,000 in the quarter to September to 1.75 million - 103,000 fewer than the previous three months and 210,000 down on a year ago.

The number of people in work has continued to increase, to a record high of 31.2 million, 419,000 more than a year ago and up by 177,000 over the quarter.

But the number of people claiming social welfare has increased for the third month in a row, up by 3,300 in October to 795,500, said the ONS.

The figure covers people on Jobseeker's Allowance and those on the out of work element of Universal Credit.

Average earnings increased by 2.5% in the year to September, down by 0.3% on the previous month.

Other figures showed that the number of people classed as economically inactive fell by 22,000 to just under nine million in the latest period, the lowest for more than a year.

That figure includes students, those on long-term sick leave, people looking after a relative or who have given up looking for work.

The employment rate has reached 73.7%, the highest since comparable records began in 1971.

The record rate for women (69%) is partly due to changes in the state pension age, resulting in fewer retiring between the ages of 60 and 65.

Commenting on the figures ONS statistician Nick Palmer said: "These figures continue the recent strengthening trend in the labour market, with a new record high in the employment rate and the unemployment rate still at its lowest level since spring 2008.

"Earnings continue to grow, albeit the rate for regular pay has fallen back a little from recent months," he added.

The number of job vacancies fell by 5,000 over the last quarter to 736,000, while self-employment has increased by 30,000 to 4.5 million.

The number of people working part-time wanting a full-time job has fallen by 30,000 to 1.2 million.

The number of non-UK nationals working in this country has increased from 986,000 in 1997 to 3.2 million now.

The increase reflects the admission of several new member states to the European Union.

Non-UK nationals from the EU working in the country increased by 324,000 to 2.02 million over the past year, while the figure for non-UK nationals from outside the EU was little changed at 1.2 million.

The UK's unemployment rate has fallen by 0.3% to 5.3%, compared with an EU average of 9.3%. The highest rates are in Greece (25%) and Spain (21.6%) while the lowest is in Germany (4.5%).