Employment in Britain has risen to a record high, underlining the continued strength of its labour market despite months of global uncertainty.

The economy absorbed 133,000 new workers in the second quarter, the highest number since spring 2000. The Office for National Statistics said the number of people in work rose to 28.6 million in the second quarter.

This pushed the employment rate, already high by the standards of many European Union member states to 74.8 per cent of the working age population, close to the British government's 75 per cent target.

In July, the number of people unemployed and claiming benefit fell by 3,000 to 950,000 - only 3.1 per cent of the workforce.

The number of people seeking work but unable to find it, a broader measure, which is preferred by the government rose by 6,000 in the second quarter to 1.544 million, but remains low by recent standards.

Ms Juli Collins-Thompson, economist at BNP Paribas, said: "The resilience of the UK labour market in the present downturn is remarkable." But the figures continued to underline the stark difference in fortunes between different parts of the economy.

Recruitment in many parts of the private sector has been weak, particularly in computing and manufacturing.

By contrast, the government's ambitious plans to expand public services have continued to boost public sector employment, and its plans for a comprehensive revamping of Britain's infrastructure have created large numbers of jobs in construction.

The number of jobs in manufacturing continued to fall, however.

By the second quarter there were only 3.7 million left, compared with just fewer than 4 million two years before.

Moreover, the lion's share of the employment increase was in part-time staff. The number of full-time workers rose by only 20,000 to 21.4 million.

Anecdotal evidence suggests that some of the part-time workers are women with qualifications in education and health who have been tempted back into the labour market by the prospect of a better deal for these sectors.

Earnings were up by 3.9 per cent on the year in the three months to June, higher than the May rate of 3.8 per cent but still far below the 4.5 per cent level which the Bank of England thinks is compatible with its inflation target. - (Financial Times Service)