George Osborne was given a huge boost today by better than expected figures showing fewer people are out of work than at any time since 2008.
Unemployment fell by 79,000 during the three months to August, bringing the total down to 1.77 million, or 5.4 per cent of the workforce, according to the Office for National Statistics.
The number of people in work rose to 31.12 million people or 73.6 per cent of people of working age, the highest rate since comparable records began in 1971.
The drop in the jobless tally was particularly marked in London, where unemployment fell by 33,000 to 276.000, a rate of 6 per cent.
The number of people in work in London soared by 63,000 to 4.326 million.
Matthew Whittaker, chief economist at the Resolution Foundation think tank said: “London’s job market has performed better than anywhere else in Britain since the crash, though workers in the capital have also faced the deepest pay squeeze.
“London’s jobs rate is at a record high but full employment is still a long way off, and those with low-skills are less likely to be employed than anywhere else in the country.”
There was also good news on pay with average earnings up by 3 per cent, compared with yesterday’s inflation rate of minus 0.1 per cent. Basic pay excluding bonuses rose by 2.8 per cent,
