Britain’s jobless queue shrinks to 11-year low

Britain’s unemployment rate dipped to 5.0 percent in the three months to April, the lowest level since 2005, official data showed.
The unemployment rate had stood at 5.1 percent in the three months to March, which had also been a near 11-year low, the Office for National Statistics said in a statement.
The ONS added that the unemployment total dropped to 1.67 million people in the quarter to April.
Britain’s economic data is being watched closely by all sides ahead of next week’s referendum, with polls pointing to a strong possibility that the country could back an exit from the European Union.
“Some unexpected good news amidst Brexit-related uncertainty — the UK labor market remains in good health despite a wider economic slowdown ahead of the referendum,” said Ben Brettell, senior economist at stockbroker Hargreaves Lansdown.
“The economy continues to add jobs, and wage growth is running ahead of consumer price inflation, which held steady (in a release) yesterday at 0.3 percent. Today’s data will go some way to allay fears that businesses have been delaying decisions about hiring and investment until after the EU vote,” Brettell added.
Finance minister George Osborne, meanwhile, said he would introduce an emergency budget if Britain voted to leave the European Union, but 57 of his own Conservative Party’s lawmakers said they would block his spending cuts and tax hikes.
The escalation in the ruling party’s internal war over the EU raised the prospect of a government unable to operate normally in the event of a victory for “Leave” in a June 23 referendum on whether to stay in the bloc.
Osborne, who along with Prime Minister David Cameron is leading efforts to keep Britain in, said he would have to respond to a Leave vote with tax rises and spending cuts worth 30 billion pounds ($43 billion).
“There will be a big hole in the public finances and ... we would have to raise taxes and cut spending,” Osborne told reporters after giving a speech in Ashford, southeast England.
Measures could include a 2-point rise in the basic rate of income tax to 22 percent and increases in tax rates and duties on alcohol and petrol, while spending on health, education and defense could be cut by 2 percent.
The official Vote Leave campaign hit back with a statement signed by 57 Conservative lawmakers who said they would block the proposed measures in parliament.
“If the Chancellor is serious then we cannot possibly allow this to go ahead ... If he were to proceed with these proposals, the Chancellor’s position would become untenable,” they said.
The government currently has a working majority of 17 in the House of Commons. The opposition Labour Party, which has 229 lawmakers to the Conservatives’ 330, would oppose the emergency budget, its leader Jeremy Corbyn told the House.
Osborne said he would aim to introduce the emergency measures within two months of a Leave vote.
“The one thing worse than not passing a budget like that is dealing with an economic tailspin, or the complete loss of confidence in the ability of the country to manage its money,” he said.

Source ; Arab News