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Unemployment fell by 7,000 in last quarter of 2009, says ONS

Unemployment fell by 7,000 on the quarter to 2.46 million in December, the Office for National Statistics (ONS) has reported.

The number of people claiming Jobseekers Allowance (JSA) fell by 15,200 on the month to 1.606 million and the number of young people classed as unemployed fell by 16,000 on the quarter to 927,000

The number of young people claiming JSA fell by 7,600 on the month and the number of vacancies has increased by 16,000 to 448,000.

According to the Department for Work and Pensions, these figures mean unemployment is 450,000 lower than predicted at the time of the Budget, reflecting the £5 billion extra investment in expanding education and training, supporting jobs and helping the unemployed back to work. Even more support for young people is being introduced later this month.

Secretary of state for work and pensions Yvette Cooper, said: "The jobs market is still tough for a lot of people, but the drop in unemployment and youth unemployment is very welcome. It means 450,000 fewer people are out of work than everyone expected last spring. The extra investment in jobs, education and training is making a real difference, helping people through the recession and preventing the kind of unemployment we saw in the 1980s and 1990s.

"However, we know that things will still be difficult and unemployment is still likely to rise over the next few months. That is why we are determined to keep increasing the help and support to get people into jobs and training."

Minster for employment Jim Knight, added: "These figures show the largest number of people coming off unemployment benefit for 15 years which is a sign that our £5 billion investment to get people back to work is having an impact. The fact that tens of thousands more young people are taking up the Government's guarantee of a place in education or training means they are getting the valuable skills they need to get into work.

"New figures published today show that more than 25,000 people have benefited from the new six month offer, while the sixth round of winning Future Jobs Fund bidders will create almost 6,000 more jobs for young people. This brings the total number of successful bids to create jobs through the fund so far to almost 104,000. This is in addition to more than 400,000 people who have been helped into jobs through the JobcentrePlus's Local Employment Partnerships."


Commenting on the latest unemployment figures, Kevin Green, the Recrutiment and Employment Commission's (REC) chief executive, said: "This is all positive news for job-seekers and confirms that the labour market is now in recovery mode. The REC was the first business organisation to predict we would not reach the three million unemployed mark."
 
"The road to full employment will be slow but these are encouraging figures today when viewed with increasing employer confidence and a return to hiring activity.  It is now essential to avoid any kind of employment legislation which will add to employers' costs and so hinder future job opportunities."