The number of people unemployed has fallen again, according to figures from the Office for the Office for National Statistics (ONS).

Total unemployment stood at 2.46m for the quarter to December, a fall of 3,000 on the previous quarter.

The unemployment rate remained unchanged at 7.8% but the number of people claiming Jobseeker’s Allowance increased by 23,500 to 1.64m.

Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), says: “Today’s unemployment figures confirm that the UK jobs market is still in an extremely fragile state. New official estimates of ‘underemployment’ also show that the pain of the recession is much deeper than the headline numbers indicate. With a weak economic recovery set to result in further job losses in the coming months it is highly likely that the unemployment situation will get worse before it starts to get significantly better.”      

Michelle Mitchell, Age Concern and Help the Aged charity director, says: “These figures show that older workers are not benefiting from the green shoots of recovery in the job market. While unemployment has fallen or levelled out for all other age groups, 50 plus workers continue to face redundancy and the highest increase in long-term unemployment.”  

David Kern, chief economist at the British Chambers of Commerce (BCC), adds: “The economy is still very weak, and there is clearly no justification for an immediate tightening in monetary policy. The forthcoming Budget provides the Government with a perfect opportunity to introduce measures that will support businesses’ ability to increase employment – with particular emphasis on full-time jobs. It should start by scrapping the hike in employer National Insurance Contributions, planned for next year, and substitute it for a 1% rise in VAT.”