15/04/2011
UK unemployment has fallen by 17,000 people over the three months to the end of February.
Figures from the Office for National Statistics revealed today also show that the number of people in full-time work has jumped by 140,000, which represents the biggest rise in four years.
The first drop in unemployed people since last Autumn means that the national unemployment rate now stands at 7.8 per cent.
A report from Management Today claims that the rise in new jobs within the private sector was the main factor behind the drop.
It is thought that many small private sector businesses were using growth facilitators such as invoice finance in order to make funds available to create new jobs.
This involves selling accounts receivable to a third party at a discount in exchange for immediate payment.
By letting banks or investors chase up outstanding debt, companies are able to gain access to additional funds which they can use to expand their business.
Employment minister Chris Grayling was pleased to hear the results but was also keen for the private sector to continue creating jobs for the rest of the year.
Speaking to BBC News, he said: "These figures are another step in the right direction. It's good to see a rise in the number of jobs in the private sector and the fall in unemployment is welcome.''
"However, there are challenges ahead and our priority is to continue to support the economy by reducing the deficit and putting in place measures to encourage growth in the private sector."
Joe Elvin