UK unemployment falls

The number of people unemployed and claiming benefit in the UK has fallen by 10,600 in January to 951,300, according to the Office for National Statistics.

However, using a wider measure, the so-called ILO count, unemployment rose by 34,000 to 1,546,000 in the last three months of 2001.

The decline in the benefit claimant count comes after a slight increase during each of the last three months.

The ILO count, the government's preferred method, includes those out of work but not claiming benefit.

Manufacturing jobs continue to fall

The latest ONS figures also show that growth in average earnings fell, down 0.8% to 3.3% in the year to December 2001 compared to the same month one year earlier.

This was largely due to a big drop in bonus payments by financial firms.

Despite the overall fall in benefit claimants, the manufacturing industry continues to see job losses.

Work record

Another 151,000 were lost during the final three months of 2001, mainly in electrical and optical equipment, textiles, leather, clothing and metal products.

The number of people employed in manufacturing is now at a record low of 3.7m

The jobless rate now stands at 3.2%, with 55,000 fewer claimants than a year ago.

The number of people in work now stands at its highest total since records began in 1979, at 28.2m.

Work and Pensions Minister Nick Brown said too much should not be read into the figures for one month.

'More to come'

But he stressed: "The UK has low inflation, sound public finances and low unemployment.

"This, combined with a rise in employment and the fact that we are getting 10,000 new vacancies in Jobcentres every working day, shows that we are coping well with the uncertainties of the current international economic climate better than other countries and better than we have in the past."

Trades Unions expressed concern over the loss of manufacturing jobs.

TUC general secretary John Monks said: "This is serious news and comes on top of today's British Airways cuts and Ford's Dagenham plant in its last week of production.

"There is sure to be more to come for Britain's struggling airline and manufacturing sectors."