Osborne declares victory on jobs as private sector job creation booms

George Osborne declared the government has been vindicated in its economic strategy as the private sector has created three jobs for every one job lost in the public sector.

The Office for Budget Responsibility revised up the number of jobs to be created this year to 400,000.

The number of people claiming unemployment benefit has fallen by 200,000 and unemployment is predicted to fall to seven per cent by 2015 and 5.6 per cent in 2018.

Should unemployment fall to seven per cent by 2015 the Bank of England is likely to raise interest rates in line with its policy of forward guidance.