Market Commentary: the Drop of UK's Jobless Claims.. Perplexed?!

Economists were perplexed by a second day of above par data in the UK’s. The ONS’s Jobless claims surprisingly dropped the most in more than two years, falling 15k to 1.57m, the ONS’s claimant count dropping from 4.9 to 4.8%. Using the International Labour Organization (ILO) calculations, the unemployed population dropped 7k for the quarter ending July. The total working population increased by 236k over the same quarter to 29.6m, due to this rise the ILO’s unemployment rate rose from 8% to 8.1% for July. A plethora of theories surround the contradiction between the growth rate and job creation in recent times, some arguing that those made unemployed are moving into self employment were there are diseconomies of scale, therefore the total capacity of the UK economy could theoretically shrink and employment increase as productivity drops, whatever the reaction the Cameron/Osborne/Clegg team was buoyant in PM questions today.