Caxton FX: Unemployment figures will buoy economic sentiment

Date: 20th January 2010

The drop in unemployment recently revealed by Office for National Statistics data will improve confidence in the health of the UK economy, one expert has suggested.

Duncan Higgins, senior analyst at foreign exchange firm Caxton FX, said: "Today's figures will come as further evidence that the UK labour market is stabilizing.

"Though deep set concerns remain over the fiscal health of the nation, a falling unemployment rate is certainly a positive sign that conditions are improving. It should also give some solace to the government, whose extreme measures to combat the recession do appear to be taking effect."

Mr Higgins' comment follows news that the unemployment rate reduced to 7.8 per cent in November despite estimates claiming it would rise to eight per cent.

There are now currently 2.46 million unemployed people in the UK.

This represented a figure which was 450,000 below predictions made at the time of the last Budget.