Jobless total falls again

The measure of unemployment favoured by the government has fallen again, although the number of people claiming benefit has risen for the second month in a row.

The Office for National Statistics (ONS) said the jobless total dropped by 22,000 in the three months to February, bringing the total to 1.494 million.

But the number of people out of work and claiming benefit rose by in March by 1,800 to 939,900.

The ONS figures also showed average earnings rising by 3%, compared with the previous figure of 3.5%.

The slowdown in earnings growth was put down to lower end of year bonuses being paid to City workers.

Rate cut soon?

The rise in the claimant count was the first time the total has risen for two months in a row since the end of 2001.

There was more bad news for the beleaguered manufacturing sector which lost a further 140,000 over the three months to February.

But analysts said there was little worry about the overall state of the job market.

They also noted that the earnings figure could encourage the Bank of England's monetary policy committee (MPC) to cut rates when it meets next month.

"Another favourable labour market report - employment remains robust and wage inflation pressures are diminishing," said Ross Walker at RBS Financial Markets.

"The absence of wage inflation pressures will make it easier for the MPC to cut rates in May."