Unemployment has fallen for the first time in 18 months, official figures showed today.
There were 2.469m unemployed in the three months to August - 1,000 less than the 2.47m out of work during the three months to July, the Office for National Statistics (ONS) said.
This represents the first fall since the three months to March 2008, but experts warned the crisis is far from over despite the better-than-expected figures.
Most expect dole queues to resume their upward path in the months ahead as school leavers and students enter the most difficult jobs market in a generation.
Youth unemployment edged lower to 946,000 but IHS Global Insight’s Howard Archer warned: “Unless the economy turns out to be stronger than expected...many of the school leavers who cannot get a job will still be unemployed next year when the next batch of school leavers emerge.”
TUC general secretary Brendan Barber said the figures gave “some cause for hope” but added: “The jobs crisis has not gone away and the economy remains very fragile.”
Unemployment during the period was 88,000 higher than in the three months to May. The number of people claiming jobseeker’s allowance in September increased by 20,800 to 1.63m – the smallest rise since May 2008.
Further signs that the labour market could be stabilising came from the number of vacancies, which have fallen in every period since April last year.
These held firm at 434,000 in the three months to September.
The jobless rate also remained stable in the month, at 7.9%. This is the first time it has stayed the same since the three months to March last year, having increased in almost every intervening period.
Figures next week are expected to show the economy returning to weak growth between July and September after five quarters of recession but business groups also warned against complacency.
David Kern, chief economist at the British Chambers of Commerce (BCC), said: “A sustainable recovery is not guaranteed. Although confidence is strengthening, businesses are still facing serious pressures...lending is still too weak, and many are struggling to retain their skills base.”
