UNEMPLOYMENT has fallen to a 12-year low but the North-East is the UK’s jobless hotspot, according to new figures.

The national jobless total was cut by 52,000 in the quarter to August to 1.4 million, the lowest since 2005, with women driving the growth in employment.

However, the North-East, although seeing its unemployment number fall 3,000 to 75,000, still had the country’s highest unemployment rate of 5.8 per cent.

The lowest rate was 3.3 per cent in the South-East, which had 158,000 out of work.

More than 32 million people are in work, including 15 million women, with the female employment rate reaching a record 70.7 per cent, according to figures released by the Office for National Statistics today (Wednesday, October 18).

The female unemployment rate has reached a joint record low of 4.2 per cent.

The number of job vacancies has increased by 3,000 to a near-record high of 783,000.

Average earnings increased by 2.2 per cent in the year to August, unchanged from the previous month, and below the latest RPI inflation rate of 3.9 per cent and three per cent for CPI inflation.

ONS statistician Matt Hughes said: "Many labour market measures continue to strengthen.

"Employment growth in the latest three-month period was driven mainly by women, with a corresponding drop in inactivity.

"Vacancies remain robust, at a near-record level.

"On the other hand, total earnings in cash terms grew slower than prices over the last year, meaning the real value continues to fall - down 0.3% over that period."

Other data showed that the number of people classed as economically inactive fell by 17,000 over the latest quarter to 8.8 million, giving a record low rate of 21.4 per cent.

The figure includes those looking after a sick relative, on long-term sick leave, early retirement or people who have given up looking for a job.

The UK now has an unemployment rate of 4.3 per cent, the joint lowest since 1975.

The claimant count, which includes people on Jobseekers Allowance and the unemployment element of Universal Credit, increased by 1,700 last month to 804,000.

The increase in the employment rate for women is partly due to ongoing changes to the state pension age, resulting in fewer women retiring between the ages of 60 and 65.

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