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| UK unemployment falls by 61,000 | UK unemployment falls by 61,000 |
| (39 minutes later) | |
| UK unemployment fell by 61,000 to 1.61 million in the three months to the end of December, government figures show. | UK unemployment fell by 61,000 to 1.61 million in the three months to the end of December, government figures show. |
| The Office for National Statistics (ONS) also said the number of people claiming jobseeker's allowance in January fell by 10,800 to 794,600. | The Office for National Statistics (ONS) also said the number of people claiming jobseeker's allowance in January fell by 10,800 to 794,600. |
| Average earnings rose at an annual rate of 3.8% in December, down slightly. | Average earnings rose at an annual rate of 3.8% in December, down slightly. |
| The figures come amid signs that the UK economy is slowing down, and after the Bank of England recently cut its main interest rate to 5.25% from 5.5%. | The figures come amid signs that the UK economy is slowing down, and after the Bank of England recently cut its main interest rate to 5.25% from 5.5%. |
| Time lag | Time lag |
| Economists noted that any economic downturn takes time to be reflected in the official figures. | |
| "The data shows the slowing economy hasn't yet affected the labour market. It normally takes about six months to feed through," said Vicky Redwood, an economist at Capital Economics. | "The data shows the slowing economy hasn't yet affected the labour market. It normally takes about six months to feed through," said Vicky Redwood, an economist at Capital Economics. |
| "The Bank of England will be comforted by the fact that pay growth is subdued. But inflation is set to rise sharply and could have a knock-on effect on wage demands," she added. | "The Bank of England will be comforted by the fact that pay growth is subdued. But inflation is set to rise sharply and could have a knock-on effect on wage demands," she added. |
| The Bank of England's interest rate-setting Monetary Policy Committee (MPC) is tasked by the government to meet the inflation target of 2%. | The Bank of England's interest rate-setting Monetary Policy Committee (MPC) is tasked by the government to meet the inflation target of 2%. |
| Figures released on Tuesday showed that rising food and petrol prices pushed up UK inflation in January, with Consumer Prices Index (CPI) inflation rising to 2.2% from 2.1% in December. | Figures released on Tuesday showed that rising food and petrol prices pushed up UK inflation in January, with Consumer Prices Index (CPI) inflation rising to 2.2% from 2.1% in December. |
| 'Balanced picture' | |
| Mervyn King, the governor of the Bank of England, said the falling unemployment figures should counter negative predictions of a recession in the UK. | |
| "I'd encourage you to try and present a balanced picture and not just focus on lurid headlines about forecasts of doom and gloom to come," he told reporters at a news conference. | |
| "There's a great deal of uncertainty, we're not complacent, but the data so far cannot be described as doom and gloom," Mr King said. | |
| Unemployment fell in 8 of the 12 regions of the UK, according to the ONS. The West Midlands saw the largest fall, down 22,000 to 151,000. | |
| The total number unemployed rose in London by 16,000 to 259,000, and in Northern Ireland by 3,000 to 34,000. |