UNEMPLOYMENT has continued to fall, down to a near seven-year low, while a record number of people are in work, but the North-East still suffers the highest rate in the UK.

The jobless total dipped by 97,000 in the quarter to last December to 1.86 million - almost half a million down on a year ago.

Unemployment was highest in the North-East at 8 per cent and lowest in the South-West at 4.5 per cent, but the rate in our region has fallen by 2 per cent since the start of last year. 

In addition, the headline claimant count rate - the number of people claiming Jobseekers' Allowance - was highest in the North-East at 4.1 per cent while the South-East and South-West was only 1.4 per cent. 

Nationally, employment increased by 103,000 to almost 31 million, the highest since records began in 1971.

The number of people claiming jobseeker's allowance was cut by 38,600 in December to 823,000, the 27th consecutive monthly fall and the lowest since the summer of 2008.

The UK now has the third lowest unemployment rate in the European Union at 5.7 per cent, behind Austria (4.9 per cent) and Germany (4.8 per cent), according to data from the Office for National Statistics (ONS).

Pay continued to rise ahead of inflation, with average earnings increasing by 2.1 per cent in the year to December, 0.3 per cent up on the previous month.

Long-term unemployment is also down, falling by 210,000 for those out of work for over a year, to 638,000.

Self-employment was down by 19,000 over the latest quarter to 4.5 million, around 14 per cent of total employment.

The number of people in part-time jobs wanting full-time work is also down, by 28,000 to 1.3 million.

But people classed as economically inactive, including those on long-term sick leave, looking after a relative or who have given up looking for work, increased by 22,000 to more than nine million.

Work and Pensions Secretary Iain Duncan Smith said: "With unemployment continuing to fall, wages rising, and a record number of people in work, it's clear that the Government's long-term economic plan to get the country back on track is working.

"In the week that Universal Credit started its nationwide roll-out, these figures show that a reformed welfare system goes hand in hand with helping people to take advantage of the record number of vacancies available.

"The jobs-led recovery is changing people's lives for the better on a daily basis. We are getting people into work, making work pay, and in so doing we are ensuring a better future for Britain."

Shadow employment minister Stephen Timms said: "Today's fall in overall unemployment is welcome but five years of the Tories' failing plan has left working people £1,600 a year worse off since 2010. Low pay has left millions of working families struggling to make ends meet and has led to billions more spent on the housing benefit bill."

Mr Timms said it was "extremely worrying" that youth unemployment had increased slightly.
Paul Kenny, leader of the GMB union, said: "The Government, and employers across the EU, having spent years undermining employee protections in a race to the bottom, can hardly be surprised that the new jobs being created are mainly low skilled, low paid and very precarious.

"Even skilled workers in the UK face being undercut while wages are stagnant or falling in real terms.
"Most workers have seen little or no evidence of any recovery in living standards due to the Tories wasting their time in office by not promoting real economic growth based on investment and productivity gains."

Chris Jones, chief executive of the City & Guilds Group, said: "It's encouraging that more people are employed, but it seems premature to celebrate - especially when youth unemployment is still so high.
"Countless young people are caught in the vicious cycle of trying to find work to gain experience, but needing experience to find work."