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Private sector job creation boosts UK employment in second quarter

The Office for National Statistics (ONS) released its Labour Market Statistics for May to July 2013 on Wednesday, which showed that compared to a year earlier there were 275,000 more people in employment, 105,000 fewer unemployed people and 52,000 fewer economically inactive people aged from 16 to 64.

The employment rate for those aged from 16 to 64 was 71.6%, with 29.84m people in employment, up 80,000 from the February to April 2013 figures and up 275,000 from 2012.

However employment continued to decrease in the UK public sector by

34,000 to 5.665m, while the private sector employment increased by 114,000, to 24.171m.

The unemployment rate had also dropped to 2.49m unemployed, down 24,000 from February to April 2013 and down 105,000 from 2012. The unemployment rate of the economically active population was 7.7% down 0.1 percentage points from February to April 2013 and down 0.4 percentage points from the previous year.

The number of economically inactive people aged from 16 to 64 was 22.3% at 8.96m, down 33,000, 0.1 percentage points for February to April and down 52,000 and 0.2 percentage points from 2012.

Regional statistics showed that the South East had the highest rate of employment at 76% with the lowest being in the North East at 67.2%. The highest inactivity rate was in the North West at 24.9 and the lowest in the East of England at 19%.

David Kern, Chief Economist at the British Chambers of Commerce (BCC) commented that the further increase in private sector employment, at a time when the public sector is still shedding jobs, demonstrates yet again that private firms are able to drive the recovery.


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