There are worries that government spending cuts will lead to higher unemployment The number of people unemployed in the UK fell by 8,000 to 2.47 million in the three months to July, figures show.
This meant overall UK unemployment rate remained at 7.8%, the Office for National Statistics (ONS) said.
However, the figures also showed the claimant count – those out of work and seeking unemployment benefit – rose by 2,300 in August to 1.47 million.
Many economists fear unemployment will rise later in the year when government cuts begin to kick-in.
There is concern that the UK’s labour market will not be strong enough to support the public sector job losses looming under next month’s spending review.
The number of people employed increased by 286,000, the ONS said – the biggest quarterly rise since 1971.
However, this was largely driven by a rise in part-time workers, with the ONS saying more students may be taking on part-time jobs alongside their studies.
Employment Minister Chris Grayling said the rising claimant count showed that new jobs were not being filled by people on benefits – and underlined the need for urgent reform of the benefits system.
The ONS said that average earnings increased by 1.5% in the year to July, compared with a rate of1.3% the previous month.
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