Britainís labour market showed unexpected resilience as the number of people claiming unemployment benefit fell last month to its lowest level since last September, new figures showed recently.
The claimant count confounded predictions by falling 10,600 in January to 951,300, a jobless rate of 3.2%, following three consecutive monthly increases. The City had expected a rise of 6,000 in claimant counts.
The claimant count is 55,000 lower than a year ago, although Januaryís surprise fall could be a statistical quirk because data at the start of the year is more volatile.
But the strength of the labour market was also confirmed by figures showing the number of people in employment rose to 28.232m in the final quarter of last year, the highest since records began in 1979.
Coupled with the surprising spurt in inflation in January, the latest jobs data appear to rule out another cut in interest rates next month. Indeed, the Bank of England may well raise rates. At 4%, UK interest rates are at their lowest in 37 years.
The government-preferred International Labour Organisation (ILO) unemployment total, which includes people not eligible for benefit, increased by 34,000 between October and December to 1,546,000.
UK unemployment figures fall
Unexpected resilience
