Unemployment has fallen and there are fewer jobseekers claiming benefit, but the number of people classed as economically inactive has reached a record high, according to figures from the Department of Work and Pensions.

The number of people out of work fell by 15,000 in the three months to April to 1.7m, although the figure was still 58,000 higher than a year ago.

The claimant count, which covers people eligible for jobseeker's allowance, fell by 9,300 in May to 880,400, the tenth time the figure has fallen in the past 11 months.

The claimant count has fallen for eight months in a row, the longest continual reduction since a run of 20 consecutive monthly reductions which started in the summer of 2003.

But the figures show a big increase in the number of people classed as economically inactive, which includes students, those looking after a relative, workers who have taken early retirement or given up looking for a job.