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

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Why relations between Theresa May and Philip Hammond became tense so quickly

The political imperative of controlling immigration is clashing with the economic imperative of maintaining growth. 

There is no relationship in government more important than that between the prime minister and the chancellor. When Theresa May entered No.10, she chose Philip Hammond, a dependable technocrat and long-standing ally who she had known since Oxford University. 

But relations between the pair have proved far tenser than anticipated. On Wednesday, Hammond suggested that students could be excluded from the net migration target. "We are having conversations within government about the most appropriate way to record and address net migration," he told the Treasury select committee. The Chancellor, in common with many others, has long regarded the inclusion of students as an obstacle to growth. 

The following day Hammond was publicly rebuked by No.10. "Our position on who is included in the figures has not changed, and we are categorically not reviewing whether or not students are included," a spokesman said (as I reported in advance, May believes that the public would see this move as "a fix"). 

This is not the only clash in May's first 100 days. Hammond was aggrieved by the Prime Minister's criticisms of loose monetary policy (which forced No.10 to state that it "respects the independence of the Bank of England") and is resisting tougher controls on foreign takeovers. The Chancellor has also struck a more sceptical tone on the UK's economic prospects. "It is clear to me that the British people did not vote on June 23 to become poorer," he declared in his conference speech, a signal that national prosperity must come before control of immigration. 

May and Hammond's relationship was never going to match the remarkable bond between David Cameron and George Osborne. But should relations worsen it risks becoming closer to that beween Gordon Brown and Alistair Darling. Like Hammond, Darling entered the Treasury as a calm technocrat and an ally of the PM. But the extraordinary circumstances of the financial crisis transformed him into a far more assertive figure.

In times of turmoil, there is an inevitable clash between political and economic priorities. As prime minister, Brown resisted talk of cuts for fear of the electoral consequences. But as chancellor, Darling was more concerned with the bottom line (backing a rise in VAT). By analogy, May is focused on the political imperative of controlling immigration, while Hammond is focused on the economic imperative of maintaining growth. If their relationship is to endure far tougher times they will soon need to find a middle way. 

George Eaton is political editor of the New Statesman.