Unemployment numbers drop by 7000

The number of unemployed people in recession-hit Britain fell by 7,000 to 2.59 million in the quarter to July compared with the three months to April, official data showed on Wednesday. Britain's unemployment rate was stable at 8.1 percent, the Office for National Statistics (ONS) said in a statement. The rate and number of unemployed however rose slightly when compared with the quarter ending in June, the ONS added. "To a certain extent the recent performance of the labour market may have been supported by temporary hiring connected with the Olympics," said Investec bank analyst Philip Shaw. "This is difficult to confirm as the ONS remarked that the lion's share of this would have occurred in August." Britain is currently in recession, which the government blames largely on the debt crisis in the neighbouring eurozone. The main opposition Labour party claims the downturn is mainly a result of hefty cuts to state spending.