Year	Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep	Oct	Nov	Dec
2009	6.60	6.80	7.10	7.30	7.60	7.80	7.90	7.80	7.80	7.90	7.80
2008	5.20	5.20	5.20	5.30	5.20	5.40	5.50	5.70	5.90	6.00	6.20	6.40
2007	5.50	5.50	5.50	5.50	5.40	5.40	5.30	5.30	5.30	5.30	5.30	5.20
2006	5.10	5.20	5.20	5.30	5.40	5.50	5.50	5.50	5.50	5.50	5.40	5.50

U.K. Jobless Claims Fell Most Since 2007 in December
Published: 1/20/2010 10:06:40 AM By: TradingEconomics.com, Bloomberg

U.K. unemployment fell at the fastest pace since April 2007 last month as the economy showed signs of emerging from its worst recession on record.

Claims for jobless benefits declined 15,200 to 1.61 million, the Office for National Statistics said. A broader measure of unemployment showed the first quarterly fall in 18 months.

The figures will help Prime Minister Gordon Brown, who is trailing in opinion polls with a general election due by June. While employment levels are stabilizing, companies may be reluctant to start hiring again as the economy struggles to shake off the slump.

Based on International Labour Organization methods, unemployment fell 7,000 in the three months through November to 2.46 million. That was the first quarterly decline since March- May 2008.

The number of people in work declined 14,000 to 28.9 million, with part-time employment offsetting a drop in full- time work. Job vacancies in the fourth quarter rose by 16,000.

In November, the number of jobless claims fell by 10,800 instead of the 6,300 originally reported. Claims last fell for two straight months in early 2008. In December, the claimant-count rate was unchanged at 5 percent.

Unemployment has risen by less than officials initially predicted as companies froze pay and cut working hours to retain labor needed once the economy returns to growth.

At 7.8 percent, the U.K. jobless rate is below the 10 percent figure in the U.S. and the euro region. Many economists expect it to peak below 10 percent, compared with the postwar high of 11.9 percent recorded in 1984.

While the economy probably escaped the recession in the fourth quarter, the pace of recovery is likely to be muted and companies will increase working hours before they start hiring, economists say.

Six consecutive quarters of economic contraction has destroyed more than half a million jobs in the U.K., with the ax falling hardest on the young. Almost 20 percent of people age 16 to 24 were without work in the three months through November and the number of people unemployed for more than 12 months climbed to the highest level since 1997.

Job losses have suppressed pay pressures in the economy. New figures published by the statistics office today show average weekly pay grew 0.7 percent in the three months through November to 451 pounds. Regular pay increased 1.1 percent and bonuses fell 9 percent, with bonuses in the finance and business services sector dropping 10.8 percent.

Average earnings expanded 1.6 percent in the period through November, with earnings excluding bonuses growing at the same pace.

United Kingdom Economic News

Bank of England Halts Bond Purchase Program
Published: 2/4/2010 10:30:30 AM By: TradingEconomics.com, Bank of England

The Bank of England paused its 200 billion-pound ($317 billion) bond-purchase plan and left open the option to buy more as officials gauge the health of the U.K.’s recovery.

British Economy is Recovering But is Not Out of the Woods
Published: 1/30/2010 12:58:15 PM By: Anna Fedec, contact@tradingeconomics.com

In the fourth quarter of 2009, the United Kingdom economy expanded 0.1% qoq, finally emerging from the longest and deepest recession since the mid-1940s. Yet, the recent wave of optimism may be way exaggerated since recent growth is mainly supported by fiscal and monetary stimulus.

British Economy Exits Recession
Published: 1/26/2010 10:08:55 AM By: TradingEconomics.com, WSJ

The U.K. economy crept back to growth in the fourth quarter of 2009, narrowly emerging from a deep recession that began in the second quarter of 2008.

U.K. Inflation Rate Jumps Most on Record
Published: 1/19/2010 10:00:17 AM By: TradingEconomics.com, Bloomberg

The U.K. inflation rate jumped in December by the most since records began in 1997, posing a challenge to policy makers as they consider when to start raising interest rates

UK Exports Rises in November
Published: 1/16/2010 2:16:54 PM By: TradingEconomics.com, BBC

UK exports in November jumped to the highest in 13 months, official figures have shown.

BOE Keeps Bond-Purchase Plan at 200 Billion Pounds
Published: 1/7/2010 10:13:16 AM By: TradingEconomics.com, Bloomberg, BoE

The Bank of England pledged to spend the rest of its 200 billion-pound ($318 billion) bond purchase program as policy makers sought to ensure the economy’s escape from the recession.

U.K. GDP Revised Up to Show 0.2% Drop
Published: 12/22/2009 10:05:24 AM By: TradingEconomics.com, Bloomberg

The U.K. economy shrank less than previously estimated in the third quarter as a jump in construction and fixed investment brought the longest recession on record closer to ending.

U.K. Inflation Accelerates
Published: 12/15/2009 9:43:43 AM By: TradingEconomics.com, Bloomberg

U.K. inflation rose more than economists forecast in November to the fastest pace in six months, driven by fuel and transport costs.

Bank of England Keeps 200 Billion-Pound Bond Plan
Published: 12/10/2009 9:35:02 AM By: TradingEconomics.com, BoE

The Bank of England stuck to its plan to buy as much as 200 billion pounds ($326 billion) in bonds as officials seek to ensure the economy’s escape from the longest recession on record.

More news

Unemployment Rate Definition

The labour force is defined as the number of people employed plus the number unemployed but seeking work. The participation rate is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalised). The nonlabour force includes those who are not looking for work, those who are institutionalised such as in prisons or psychiatric wards, stay-at home spouses, kids, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by the adult population (or by the population of working age). In these statistics, self-employed people are counted as employed.

Variables like employment level, unemployment level, labour force, and unfilled vacancies are called stock variables because they measure a quantity at a point in time. They can be contrasted with flow variables which measure a quantity over a duration of time. Changes in the labour force are due to flow variables such as natural population growth, net immigration, new entrants, and retirements from the labour force. Changes in unemployment depend on: inflows made up of non-employed people starting to look for jobs and of employed people who lose their jobs and look for new ones; and outflows of people who find new employment and of people who stop looking for employment.

When looking at the overall macroeconomy, several types of unemployment have been identified, including:
Frictional unemployment — This reflects the fact that it takes time for people to find and settle into new jobs. If 12 individuals each take one month before they start a new job, the aggregate unemployment statistics will record this as a single unemployed worker. Technological change often reduces frictional unemployment, for example: the internet made job searches cheaper and more comprehensive.
Structural unemployment — This reflects a mismatch between the skills and other attributes of the labour force and those demanded by employers. If 4 workers each take six months off to re-train before they start a new job, the aggregate unemployment statistics will record this as two unemployed workers. Technological change often increases structural unemployment, for example: technological change might require workers to re-train.
Natural rate of unemployment — This is the summation of frictional and structural unemployment. It is the lowest rate of unemployment that a stable economy can expect to achieve, seeing as some frictional and structural unemployment is inevitable. Economists do not agree on the natural rate, with estimates ranging from 1% to 5%, or on its meaning — some associate it with "non-accelerating inflation". The estimated rate varies from country to country and from time to time.
Demand deficient unemployment — In Keynesian economics, any level of unemployment beyond the natural rate is most likely due to insufficient demand in the overall economy. During a recession, aggregate expenditure is deficient causing the underutilization of inputs (including labour). Aggregate expenditure (AE) can be increased, according to Keynes, by increasing consumption spending (C), increasing investment spending (I), increasing government spending (G), or increasing the net of exports minus imports (X?M). {AE = C + I + G + (X?M)} (source: wikipedia)