Posted on September - 15 - 2010

Unemployment data paints conflicting picture of economic recovery

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THE condition of the jobs market remains uncertain as the economy continues to produce conflicting data on its post-recession journey.

Britain saw the largest rise in employment since records began in 1971 in the three months to July as official figures today revealed 286,000 more people secured jobs. But the number of people claiming jobseeker’s allowance also rose, by 2,300, in August to 1.47m, the first increase since January.

Across Liverpool city region – which incorporates Merseyside and Halton – the claimant count rose by 863, taking it back above 50,000 people.It ended six consecutive monthly falls, although unemployment in the city region remains 13% below the peak reached at the start of the year.

Halton was the only borough that saw a fall last month and continues to be the best performer locally with a 20% drop in claimants in the same period.

David Kern, chief economist at the British Chambers of Commerce, said: “These figures were mixed. While there were some positive developments, particularly a big rise in employment and a fall in inactivity, the number of people working part-time because they could not find a full-time job has increased further.

“There is no room for complacency and the labour market must prepare for the impact on jobs that will result from the Government’s deficit-cutting measures. With this in mind, we reiterate our forecast that UK unemployment is likely to peak at around 2.65 million in the first half of 2012.”

Nationally, those in part-time work increased by 166,000 quarter on quarter to 7.9m in the three months to July, but the number of full-time workers soared by 121,000 to 21.2m in an hopefulsign for the UK labour market.

The figures suggest the rise in employment may be primarily down to economically inactive people finding work, rather than unemployed people getting jobs.

In particular, the Office for National Statistics said more students may be taking on part-time jobs alongside their studies.

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