Economic slowdown 'hits jobs market'

JJB Sports said it was shutting 72 stores with the loss of around 800 jobs, a day after discount clothing chain Ethel Austin went into administration.

Japanese manufacturer Fujitsu added to the jobs gloom by unveiling plans to move work from its site in Birmingham to the United States, with the loss of 120 jobs.

But official figures showed that UK unemployment continued to fall, while the number of people in work reached a record high.

The employment level was 29.5 million in the three months to February, the best since records began in 1971, while unemployment fell by 39,000 to 1.6 million.

However, the Office for National Statistics (ONS) revised the number of people claiming jobseeker's allowance in February, which showed a rise of 600 instead of a previously reported fall of 2,800.

The change, following a routine annual review of seasonal adjustments, brought to an end 16 consecutive monthly falls in the claimant count and was the first rise since September 2006.

The number of people claiming work-related benefit fell last month by 1,200 from the revised February figure to 794,300, the lowest figure since the summer of 1975.

Average earnings increased by 3.7% in the year to February, down by 0.2% from the previous month, although - excluding bonuses - the figure was up by 0.1% to 3.8%, suggesting that basic pay is increasing faster than bonuses. Wage growth was the same in the public sector and private firms.

Employment Minister Stephen Timms said: "More people now than ever are in work, while unemployment continues to fall, showing strong performance in spite of the current global economic uncertainties."