Five questions answered on the recent fall in unemployment

Down by 57,000 to 2.51 million.

The latest unemployment figures released today from the Office for National Statistics show that unemployment has fallen. We answer five questions on the drop.

How much is unemployment down by? 

According to today’s figures unemployment is down by 57,000 to 2.51 million in the three months to May.

Jobseeker’s Allowance claimants fell in June by 21,200 to 1.48 million – the first fall below 1.3 million for nearly three years.

Regionally, London saw a 16,000 fall in unemployment to 368,000, and the South East saw a 20,000 fall to 286,000.

Overall, the number of people in employment rose by 16,000 to a total of 29.7 million.

How has youth unemployment faired in the statistics?

Very well. Youth unemployment fell by 20,000

Is it all good news?

Not quite. The number of long term jobless has hit a 17-year high, with 915,000 people being out of work for more than a year. This is an increase of 32,000 and the highest total since 1996.

Just over 460,000 people have been jobless for more than two years, the highest figure since 1997, and the number of people classed as economically inactive has also increased in the last three months to 9.04 million, up by 87,000.

What has Employment Minister Mark Hoban said about these latest figures?

"The fall in the number of people claiming out-of-work benefits, together with the news that there are currently over half a million vacancies available in the UK economy, show that there are opportunities out there for those who are prepared to work hard, and who aspire to get on in life," he told the BBC.

What have the experts said?

David Kern, chief economist at the British Chambers of Commerce, speaking to the BBC said: " ...the labour market remains an area of strength for the UK economy.

"There are some areas of concern, however. Long-term unemployment is up, and youth unemployment, while edging down, is still too high. But at a time when the government's austerity plan remains in force and the public sector is shrinking, it is reassuring that the private sector is willing and able to create jobs."

Labour's shadow work and pensions secretary, Liam Byrne, said: "Any shred of progress on jobs is welcome but today's figures show that economic recovery is so weak that pay is plummeting.

"We are now creating jobs ten times more slowly than this time last year and there are more part-timers looking for full time work than ever before."

Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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How Theresa May laid a trap for herself on the immigration target

When Home Secretary, she insisted on keeping foreign students in the figures – causing a headache for herself today.

When Home Secretary, Theresa May insisted that foreign students should continue to be counted in the overall immigration figures. Some cabinet colleagues, including then Business Secretary Vince Cable and Chancellor George Osborne wanted to reverse this. It was economically illiterate. Current ministers, like the Foreign Secretary Boris Johnson, Chancellor Philip Hammond and Home Secretary Amber Rudd, also want foreign students exempted from the total.

David Cameron’s government aimed to cut immigration figures – including overseas students in that aim meant trying to limit one of the UK’s crucial financial resources. They are worth £25bn to the UK economy, and their fees make up 14 per cent of total university income. And the impact is not just financial – welcoming foreign students is diplomatically and culturally key to Britain’s reputation and its relationship with the rest of the world too. Even more important now Brexit is on its way.

But they stayed in the figures – a situation that, along with counterproductive visa restrictions also introduced by May’s old department, put a lot of foreign students off studying here. For example, there has been a 44 per cent decrease in the number of Indian students coming to Britain to study in the last five years.

Now May’s stubbornness on the migration figures appears to have caught up with her. The Times has revealed that the Prime Minister is ready to “soften her longstanding opposition to taking foreign students out of immigration totals”. It reports that she will offer to change the way the numbers are calculated.

Why the u-turn? No 10 says the concession is to ensure the Higher and Research Bill, key university legislation, can pass due to a Lords amendment urging the government not to count students as “long-term migrants” for “public policy purposes”.

But it will also be a factor in May’s manifesto pledge (and continuation of Cameron’s promise) to cut immigration to the “tens of thousands”. Until today, ministers had been unclear about whether this would be in the manifesto.

Now her u-turn on student figures is being seized upon by opposition parties as “massaging” the migration figures to meet her target. An accusation for which May only has herself, and her steadfast politicising of immigration, to blame.

Anoosh Chakelian is senior writer at the New Statesman.

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