Unemployment in the U.K. dropped to below 2.5 million during the first three months of the year, marking the lowest level in eight months and indicating that government cuts have not yet hit the labor market, according to Financial Times. On Wednesday, the Office for National Statistics reported that the unemployment rate was 7.7% of the workforce in the three months to March, shedding 0.1% from the last quarter of 2010. The number of unemployed Britons dropped by 36,000 to 2.46 million in the first quarter of year, which is the lowest level sine September of last year.
Despite the positive headline figure, the report also showed that the number of new claims for jobless allowance rose by 12,400 to 1.47 million in April, which is the largest increase in 15 months. Howard Archer of IHS Global Insight said, “While the labor market data are mixed, overall they fuel concern over the outlook for jobs.” Archer continued, “The data fuel our belief our that unemployment is headed up over the coming months.” The government’s austerity measures are projected to have a dramatic impact on public sector jobs.