Part-timers push employment to UK high The number of people in work in the UK soared to its highest level since records began in 1971 in the three months to August as the labour market continued to defy suggestions of economic gloom. Unemployment also fell 50,000 to 2.53m, the lowest level for 14 months, while the jobless rate dropped from 8.1 per cent to 7.9 per cent of the workforce. Economists had expected it to remain unchanged. The number of unemployed 16 to 24-year-olds dropped below the 1m mark for the first time in a year, down 62,000 to 957,000. Overall employment rose 212,000 to 29.59m, taking it above the pre-crisis peak of 29.57m in March-May 2008, though some of that is accounted for by the growing labour force. The employment rate, at 71.3 per cent of the workforce, remained below its pre-crisis high of 73 per cent. The growth in employment was again largely driven by a sharp rise in part-time workers, up 125,000 to 8.13m, the highest since comparable records began in 1992. The number working part-time because they cannot get a full-time job was close to a record at 1.41m. The data from the Office for National Statistics continue Britain's "productivity puzzle," whereby the labour market is rapidly creating jobs despite output data showing a double-dip recession. Howard Archer, an economist at IHS Global Insight, said it was "another set of impressively resilient and healthy labour market data which gives a lift to recovery hopes." Mark Hoban, employment minister, said: "It's a real landmark to see more people in work than ever before. Despite the tough economic times, the private sector continues to create jobs and our welfare reforms are encouraging people to return to work - with 170,000 fewer people on the main out-of-work benefits than in May 2010. "The big fall in youth unemployment is particularly welcome, but we know this remains a challenge, which is why we have the £1bn Youth Contract offering nearly 500,000 work experience places, apprenticeships and wage incentives to help young people get a job."" Of the rise in employment, 100,000 came in London, a possible sign of a continuing Olympic effect. However, unemployment rose slightly in the capital. The number of people classed as economically inactive fell 138,000, including a drop of 103,000 in the long-term sick. The number of people claiming jobseeker's allowance fell 4,000 to 1.57m in September, the third consecutive monthly fall. Pay rises continued to lag behind inflation, with average earnings including bonuses up 1.7 per cent on a year earlier in June-August, up 0.1 points on May-July. Unemployment fell 40,000 in north-west England, 13,000 in the east Midlands and 11,000 in the north east. The north east had the highest jobless rate at 9.9 per cent of the workforce, and south-west England the lowest at 5.8 per cent.