Ammon News - The number of people unemployed in the UK fell by 20,000 to 2.45 million in the three months to August. This meant the overall UK unemployment rate fell to 7.7% from 7.8% the Office for National Statistics (ONS) said.

However, the figures also showed the claimant count - those out of work and receiving unemployment benefit - rose by 5,300 in September to 1.47 million.

Many economists fear unemployment will rise later in the year when government cuts begin to kick in.

A report by accountants PwC predicts that cuts in public sector spending will have the knock-on effect of about 500,000 job losses in the private sector.

But Work and Pensions Secretary Chris Grayling said that reducing the deficit through spending cuts was the only way to secure long-term job opportunities.

he said "Unless business and unless investors internationally have confidence that Britain is sorting out its financial problems they won't invest here, they won't the jobs we need, and that's the only way we can sustainable, long-term employment,"

He also added "Borrowing to jobs isn't the way to our future."

* BBC NEWS