Updated 1:25pm 12 April 2012

Liverpool city region unemployment falls for fifth time in six months

UNEMPLOYMENT fell 1.4% across Liverpool city region last month but the long-term trend remains unclear.

Although it is the fifth monthly fall in the last six months, the number of people claiming jobseeker’s allowance in the region has fallen by fewer than 500 people since September.

The claimant count is now 57,391 – up 5,000 on last year and more than 20,000 higher than two years ago.

The latest figures showed falls in five of the region’s local authorities, led by a 3.3% drop in Wirral, while Knowsley had a very slight increase of 0.2%, which was 12 people.

Nationally the claimant count was 1.59m in February after a fall of 32,300, the biggest monthly reduction since the end of 1997.

The wider unemployment figure – which includes people not eligible for jobseeker’s allowance – was down by 33,000 over the quarter to January to 2.45m, the lowest for almost a year, and the biggest three-monthly fall for almost three years.

Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), said: “One word sums up the latest official jobs figures: confusing. Unemployment is sharply down, however you measure it. Yet there also 54,000 fewer people in work, with full-time jobs particularly hard hit.

“The apparent paradox is explained by a very sharp rise of 149,000 in the number of economically inactive people, with the number of students surging by 98,000. Jobless young people are thus turning to study in their thousands to avoid the dole.  

“Although a fall in unemployment is clearly better than a rise this should not be read as a sign that the UK jobs market is recovering strongly. Overall the jobs market is flat, operating at much weaker level of demand than before the recession, and still at risk of a serious relapse.”

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