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Unemployment edges down

Unemployment edges down

Category: Economy

Updated: 12/09/2013
First Published: 11/09/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The UK's unemployment rate edged downwards between May and June to 7.7%, official figures reveal.

The measure has become an important indicator of when the Bank of England (BoE) will increase interest rates, following Bank governor Mark Carney's announcement last month that the BoE would not consider raising base rate from its current record low of 0.5% until the UK unemployment rate has fallen below 7%.

At the time of Mr Carney's announcement unemployment was at 7.8%.

The announcement forms part of the BoE's new strategy, known as forward guidance, whereby the bank has promised to keep base rate at its current record-low until other specific economic indicators, in this case the unemployment rate, show signs of improvement.

The Bank predicts the unemployment rate will only fall to 7% in three years' time.

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