British unemployment data sparks hopes of recession exit
British jobless claims fell in December at the fastest pace for two
and a half years, data showed Wednesday, fuelling hopes that the economy
emerged from a record recession in the fourth quarter of 2009.
The number of people claiming benefits slid by 15,200 to 1.61
million, which was the sharpest monthly drop since April 2007, the
Office for National Statistics (ONS) said in a statement.
And in another encouraging sign, unemployment in Britain, according
to the International Labor Organization measure, sank by 7,000 to 2.46
million people in the three months to November. That was the first drop
since May 2008.
British Prime Minister Gordon Brown, trailing the opposition
Conservatives in polls before an election due by June, hailed the news
as evidence that Government action had helped stop soaring unemployment.
"In the 1980s recession, unemployment kept rising for five years,"
Brown said Wednesday at his weekly question and answer session with
lawmakers in the House of Commons.
"In this recession we have taken action so that we can see
unemployment falling - and we can see the action that is helping young
people into work."
The ONS added Wednesday that Britain's unemployment rate stood at 7.8
percent in the three months to November.
"The latest set of labour market data were surprisingly strong," said
Credit Suisse economist Neville Hill. "The claimant count measure of
unemployment fell for the second consecutive month in December.
"This is a compelling sign that the labour market has turned and the
economy has pulled out of recession."
Britain currently remains the last major world power mired in
recession after the eurozone, France, Germany, Japan and the United
States all emerged from a deep downturn that was sparked by the global
financial crisis.
However, most experts expect that gross domestic product (GDP) data
due next Tuesday will show the economy escaped from recession in the
three months to December, growing after six successive quarters of
decline.
"Today's labour market statistics point towards strong economic
growth in the final quarter of 2009," said economists Benjamin
Williamson at the Centre for Economics and Business Research, an
independent consultancy.
Deutsche Bank economist George Buckley added that the data suggested
that unemployment had peaked in Britain.
"This is a strong report, continuing the theme of a relatively
resilient job market.
"It is looking increasingly possible that we have seen the peak in
unemployment and that employment will begin rising again over the coming
months."
However, on a downbeat note, energy supplier EON UK announced
Wednesday that it planned to axe up to 800 jobs as the German-owned
group streamlines its customer services operations in Britain. AFP |