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UK unemployment declines unexpectedly

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By Ali May
UK unemployment declines unexpectedly

<p>The unemployment rate measured by International Labour Organisation declined to 7.7 per cent in the second quarter, the Office for National Statistics revealed in London today.</p> <p>The fall from 7.8 per cent in July moves unemployment figures closer to the 7 per cent threshold at which Bank of England officials said they will reassess the policy on key interest rate.</p> <p>According to Mark Carney, Bank of England governor, the fall to 7 per cent will take at least three years. Recent figures suggest “the job market is recovering, much like the broader economy,” Victoria Clarke from Investec Bank was quoted by the <span class="caps">BBC</span> as saying. The number of people claiming Jobseekers’ Allowance dropped to 1.4 million, the lowest level since February 2009.</p> <p>The pound rose against both the euro and the US dollar following the release of the figures.</p> <p>Mr Carney spoke to a gathering of business leaders in August and explained that the bank’s expectation of a drop in unemployment to 7 per cent was a slower rate than that of the market’s. He said:</p> <p>“The aim of our policy is to secure recovery as quickly as possible, that would – of course – be welcome. But policy is not built on hope but on expectation, and we estimate there is only a one in three chance of unemployment coming down that quickly.”</p> <p>British Prime Minister David Cameron was among other politicians to call the drop in unemployment “welcome news”.</p> <p>Although this may be good news for the economy’s unhurried recovery, next stop will be monitoring its pulse in the coming months and test its resilience.</p>