UK unemployment fell 51,000 to 2.61m in the three months from February to April suggesting the labour market has managed to hold firm despite Britain returning to a technical recession. The number of people in work rose by 166,000 to 29.28m on the previous quarter which was the largest increase for seventeen months as jobs in the private sector significantly increased. Employment in the private sector grew by 205,000 in the quarter while public sector employment fell by 39,000 to 5.9m which is the lowest figure seen since 2003. Unemployment among 16-24 year olds was down 29,000 to 1.01m.

However, part time working has risen with more people struggling to find full time work and the total number claiming the dole has risen unexpectedly. The measure of those claiming job seeker’s allowance rose by 8,100 in May reaching 1.6m, after a fall of 12,800 in April. The number of people unemployed for more than six months rose by 49,000 to 1.41m, the highest level since 1995.

The unemployment rate was 8.2% of the workforce which was unchanged from January to March. This was the third consecutive month in which unemployment has fallen despite the debt crisis in Europe. The employment minister Chris Grayling said today, “Any fall in unemployment is very welcome but I remain cautious over the next few months, given the continuing economic challenges we face.”