The number of people out of work in the UK has declined for the first time in 18 months, according to the Office of National Statistics (ONS).

Total unemployment now stands at 2.46m a fall of 7,000 on three months ago, while the number of people claiming Jobseeker’s Allowance fell to 1.61m.

David Kern, chief economist at the British Chambers of Commerce (BCC), says: “The welcome fall in unemployment raises hopes that next week’s GDP figures will confirm that the recession is over. But the labour market figures also show that there was a fall in employment, and more significantly, the level of economically inactive people has increased.
 
“The gap between public and private sector wages has widened, reinforcing the need for a freeze in the total public sector pay bill as a key measure in battling the UK’s unsustainable budget deficit. We cannot have a situation where public sector wages are outstripping those in the private sector.”