A bit of positive news from the recession-hit economy

The total number of Britons without a job dropped in the March to May period providing a rare bit of positive news from the recession-hit British economy. The number of people claiming unemployment benefits, however, rose slightly more than forecast in June, but the Office for National Statistics said on Wednesday a change in benefit rules may have contributed to the increase. Britain's labour market has been surprisingly resilient so far given that the economy slipped into its second recession in four years around the turn of the year.

The number of people claiming jobless benefit rose by 6,100 last month, the Office for National Statistics said. Analysts had forecast an increase of 5,000 on the month. The ONS said that a change in benefit rules for lone parents may have driven up the number of people claiming unemployment benefits. The number of people without a job on the wider ILO (International Labour Organisation) measure dropped by 65,000 in the three months to May to 2.584 million. The ILO jobless rate stood at 8.1 percent, compared with forecasts for an unchanged reading of 8.2 percent, the lowest rate since the May to July 2011 period. Employment rose by 181,000 in the three months through May to 29.354 million, the highest level since September to November 2008 period.

Employment Minister Chris Grayling reacting to the latest figures said: "This is an encouraging set of figures in what is still an incredibly difficult economic climate. Not only is unemployment falling but in overall terms there are now almost 100,000 less people on benefits since the 2010 election. We still have a long way to go but this is a step in the right direction."

Shadow Work and Pensions Secretary Liam Byrne responded to the news saying: "The headline fall in unemployment is a welcome respite in a blizzard of bad economic news. What today’s figures show is that Britain’s businesses are really putting their shoulder to the wheel to get Britain back to work. "But it’s alarming that many regions in Britain saw unemployment continue to spiral up, the number of young people on the dole long term has now quadrupled in a year and long term unemployment rose sharply again. And the number claiming welfare payments went up yet again. "These are exactly the people the Government’s Work Programme is supposed to get into jobs, and today is fresh evidence that the beleaguered Work Programme isn’t working.

Kenneth Gibson from the Scottish National Party responded: "In terms of employment Scotland is outperforming the rest of the UK but we need more direct action from the UK Government in the form of funding for the shovel ready projects. Tackling the scourge of unemployment is an absolute priority for the SNP and we are. We're using every lever currently available to us to secure new investment and create and safeguard jobs, in the face of severe cuts from Westminster".