Unemployment falls to 2.59 million

Unemployment in the UK fell by 7,000 in the three months to July, figures from the Office for National Statistics (ONS) show.

It takes the jobless rate to 8.1 per cent of the population, down 0.1 per cent on the quarter - a possible knock-on effect from the London Olympics, the ONS said.

There are now 2.59 million people unemployed in the UK, a figure down on the quarter but up 61,000 on the year.

However, the quarterly rise of those in full time unemployment (102,000) was also accompanied by a rise in the number of part-time workers by 134,000 to a total of 8.12 million - the highest number since comparable records began in 1992.

It indicates that the number of employees and self-employed people working part time because they could not find a full time has hit the highest level recorded.

Across the UK, the claimant count - the number claiming Jobseeker's Allowance - fell by 15,000 between July and August this year.

Unemployment and the number claiming Jobseekers allowance was the highest in the North East of England. Elsewhere in Northern Ireland, the unemployment rate reached 8.2 per cent, taking the jobless level above the UK average.

The figures also reveal that public sector employment fell for the eleventh consecutive quarter, by 235,000 to 5.7 million.

Minister for state for employment Mark Hoban called the figures 'very encouraging' but said that there were 'challenges ahead'.

Last week, national chairman for the Federation of Small Businesses (FSB) John Walker highlighted that small businesses were crucial to helping reduce unemployment and rebuilding the economy. 

The FSB is urging the Government to boost measures to help small firms and the unemployed, such as extending the national insurance contributions holiday scheme and the New Enterprise Allowance to encourage entrepreneurism.