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GDP and the Labour Market, Q3 2011 - October GDP Update

Released: 01 November 2011 Download PDF

Contributions to GDP growth

Contributions to GDP growth for 2011 Q2 and Q3

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GDP grew by 0.5 per cent in 2011 Q3 

GDP is estimated to have grown by 0.5 per cent in the third quarter of 2011. GDP has also increased by 0.5 per cent since Q3 2010, a significant slowdown from the 2.6 per cent growth in the preceding twelve months. 

Growth in the third quarter was led by the services sector which accounts for just over 76 per cent of total GDP.  Services contributed the whole of the 0.5 per cent increase in GDP in the quarter, with a small positive contribution from the production industries being offset by a contraction in construction output.

Over the past year, GDP growth has been wholly dependent on growth in the services sector, which in total contributed 0.9 points to GDP growth over the year. Construction reduced GDP growth over the year by 0.3 percentage points, and production industries by another 0.1 percentage points. Within the latter, manufacturing was a positive contributor to growth but mining and quarrying reduced GDP growth by 0.4 percentage points.

Employment and GDP growth

Q2 2011

Employment and GDP growth

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The Labour Market weakened in 2011 Q2 with the unemployment rate rising

The employment level increased by 25,000 in 2011 Q2, while the employment rate was unchanged from 2011 Q1 at 70.7 per cent. Compared to the same quarter last year the employment rate has risen 0.2 percentage points with 251,000 more people in employment.

The increase in total employment this quarter was driven by an increase of 49,000 in full time employment. The number of people in full-time employment stands at 21.35 million in 2011 Q2. This compares to a reduction in part time employment of 24,000 bringing the total number of those working part time to 7.92 million.

Self employment increased by 24,000 and employees increased by 36,000 in 2011 Q2. These increases were partly offset by declines in government supported trainees and unpaid family workers, resulting in the rise in employment of 25,000.

Unemployment has increased by 38,000 quarter-on-quarter with the unemployment rate rising on the quarter to 7.9 per cent but virtually unchanged compared to 2010 Q2.

The claimant count rose 70,300 in September compared to June taking the total number claiming to just under 1.6 million, approximately 130,000 higher than September 2010. Vacancies in Q3 2011 are 1,000 higher than in Q2 2011.

Source: Office for National Statistics

Background notes

  1. GDP estimate for quarter three from Gross Domestic Product: preliminary estimate – Q3 2011 published on 1 November 2011.

    The latest calendar quarter for Labour Market estimates is Q2 and the data is available from the Labour Market Statistical Bulletin published on 17 August 2011. Estimates for the claimant count and vacancies are available from the Labour Market Statistical Bulletin published on 12 October 2011.

  2. Sources:

    Gross Value Added at basic prices (ABMM): chained volume measures, seasonally adjusted, Office for National Statistics.

    Total employment level (MGRZ), self-employment level (MGRQ), full time employment level (YCBE), part-time employment level (YCBH): Labour Force Survey, all those aged 16 and over, seasonally adjusted, Office for National Statistics.

  3. Details of the policy governing the release of new data are available by visiting or from the Media Relations Office email:

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