Surprise fall in jobless figures

UNEMPLOYMENT in Britain unexpectedly fell back in January while employment hit a record level, official data showed today. The number out of work and claiming benefit fell by 10,600 to 951,300. The City had expected a 6,000 rise.

Nick Brown, Minister for Work, announced 28.23m people are in work - another record high. 'Employment continues to rise, with 80,000 more people in work than in the previous three months and 231,000 more over the year,' he said.

The drop in the unemployment figures brings to an end a three-month run of increases which many economists had assumed would continue for much of this year.

Statisticians warned, however, that the reason for the drop was that there had been a smaller-than-usual rise in the number of people claiming benefit in January and so the seasonally adjusted numbers showed a fall.