More people in work but concern over youth unemployment

Unemployment in the East has fallen. Photo: PA Wire

Unemployment in East Anglia has fallen by 6,000 in the second quarter of the year.

The number of people out of work in the region from April to June was 203,000, which is a 6.5% unemployment rate, according to figures from the Office for National Statistics (ONS).

On a national scale, the number of people claiming jobseeker's allowance fell to its lowest level for more than four years and employment reached a record high, but long-term and youth unemployment increased.

The so-called claimant count fell by 29,200 in July - the ninth consecutive monthly drop - to 1.4 million, the lowest since February 2009.

Total unemployment, including those not eligible for benefit, fell by 4,000 in the quarter to June to 2.5 million.

But youth unemployment, among 16 to 24-year-olds, increased by 15,000 to reach 973,000, while the number of people out of work for more than two years rose by 10,000 to 474,000, the highest since 1997.

Other figures from the ONS showed that average weekly earnings, including bonuses, increased by 2.1% in the year to June, up by 0.3% on the previous month.

It is the first time the rate has gone over 2% since 2011, but ONS said it reflected unusually high bonus payments in April.

The number of people in work increased by 69,000 in the quarter to June to 29.78 million, the highest since records began in 1971.

The figure is 301,000 higher than a year ago, giving a rate of 71.5%.

The unemployment rate has remained at 7.8%, as opposed to the 7% figure given by new Bank of England governor Mark Carney as a possible trigger for changes in interest rates.

Meanwhile, the number of people classed as economically inactive, including those looking after a sick relative or who have given up seeking work, fell by 10,000 in the latest quarter to just under nine million, a rate of 22%.

ONS said the number of people aged 16 to 64 in employment has almost recovered to what it was at the start of the recession five years ago, but the employment rate has not recovered as much because of a 673,000 increase in the population of this age group.

The employment rate for men is unchanged at 76% but has increased by 0.1% to 66.7% among women.

Self-employment has jumped by 6,000 to 4.1 million and unpaid family workers have risen by 6,000 to 111,000.