Overall unemployment now stands at 2.46 million. The claimant count measure also fell again, by 3,800 between June and July 2010, and is 1.46 million.
The number of people in employment in the three months to June increased by 184,000. This was driven by a growth of 115,000 additional part-time employees and 68,000 full-time employees. Levels of self-employment declined slightly, by 8,000. There was a significant jump over the quarter in the number of people in temporary jobs, of 95,000.
The number of vacancies for the three months to July was up by 9,000 to reach 481,000.
Economic inactivity fell by 49,000 in the three months to June. This was driven largely by declining numbers of students. The number inactive due to long-term sickness, however, continued to grow, by 42,000.
Jim Hillage, director of research at the Institute for Employment Studies, said: "There was some positive news as unemployment fell by 49,000. It was also encouraging that employment has grown, up by 184,000, and in particular that 68,000 of these were full-time jobs. The labour market though clearly remains fragile – a significant proportion of the employment growth came through temporary positions, perhaps pointing to a lack of confidence among employers, and the numbers of part-time workers unable to find full-time work continues to grow. It is also worrying that long-term unemployment growth remains unchecked, with around a third of the unemployed now out of work for more than a year. This is now particularly hitting the over-50s, of whom 43% of the unemployed have now been out of work for more than a year."
"We are now beginning to see the early signs of the public-sector downturn, with vacancy numbers across public-sector industries beginning to contract sharply. As these trends gather pace in the coming months, overall unemployment is likely to rise unless the recovery in the private sector will be sufficient to compensate for significant public sector job losses."
And David Kern, chief economist at the British Chambers of Commerce, added: "Overall, these figures were positive and better-than-expected. Employment is higher while unemployment and inactivity are both lower. However, the number of part-time workers rose to its highest level since records began, and the number of people unemployed for more than 12 months increased to a level not seen since 1997.
"While recent labour market trends are welcome, it is important to bear in mind that we have not yet seen the negative impact on jobs that will result from the tough measures announced in the Budget. On the basis of these figures, we reiterate the British Chambers of Commerce’s forecast that unemployment is likely to peak at around 2.65 million in the second half of 2011.
"The Government must do everything in its power to allow the private sector to create jobs and to offset the unavoidable cut-backs in the public sector. Reducing the significant regulatory burden still facing small and medium-sized businesses must be a key element of an economic strategy focused on job creation."
