16:44 18 December 2013
The Office for National Statistics has released a report saying that Britain’s unemployment rate has dropped to 7.4per cent – the lowest in four and a half years.
ONS said that although 2.39 million people are still out of work, the number of people claiming benefits dropped by 36,700 to 1.27 million in November.
Across the UK, England and Wales matched the national figure of 7.4per cent while Scotland unemployment stood at 7.1per cent. Meanwhile, Northern Ireland is at 7.5per cent.
Possibly because of the positive economy news, the pound performed better and increased nearly a cent against the dollar. However, should unemployment rate reach Bank of England’s 7per cent threshold, this could mean potential increase in interest rate which is currently at 0.5per cent.
The Monetary Policy Committee reacted to the news saying: “Any further substantial appreciation of sterling would pose additional risks to the balance of demand growth and to the recovery.”
However, IHS Global Insight’s Howard Archer gave the public an assurance and said: “The overall impression is that the Bank remains in no hurry to raise rates.”
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