Unemployment fell by 167,000 between September and November to 2.32 million, a rate of 7.1%, official figures showed. It is close to the 7% figure at which the Bank of England has said it will consider raising interest rates.
The TUC General Secretary Frances O’Grady has said that falling unemployment followed by an early Bank interest rate rise would "clobber mortgage holders and businesses".
The Trade union boss said: “..while headline unemployment is within a whisker of the Bank’s forward guidance threshold, an early interest rate rise would clobber mortgage holders and businesses – jeopardising our economic recovery.
“Patchy levels of jobs growth in parts of the north and the continuing squeeze on living standards should make the Bank of England think twice before considering a rate raise.”
Unemployment fell by 167,000 between September and November to 2.32 million, a rate of 7.1%, official figures showed.
So will interest rates rise? That’s the obvious question after the unemployment rate dropped even faster than economists were expecting.