UK unemployment down to 7.1%

The number of unemployed  for the quarter to the end of November 2013 dropped by 167,000, as per figures out on Wednesday from the Office of National Statistics (ONS).

The number of people now out of work is 2,320,000, with 30,150,000 in employment.

The extent of the drop took most analysts by surprise with the figures falling by a full 0.5% for the period, over the previous quarter, the largest drop in unemployed seen over one quarter in over 16 years.

The potential downside to this excellent economic data, is that the Bank of England had said that they would not raise interest rates from the current 0.5% level, until the unemployment rate has declined to 7%. That does not mean however, that a rate rise is automatic if the downward trend continues.

The pound has strengthened in international markets on the back of this excellent economic bulletin from the ONS.