This is an interesting article about UK unemployment:
http://www.telegraph.co.uk/finance/economics/7034435/UK-unemployment-drops-in-December.html
Basically, the article states that the number of people claiming job-seekers allowance has dropped, as have other measures of unemployment.
Despite this and other indications that the economy is in recovery, businesses are reluctant to hire new employees because they fear the economy will not pick up as much as predicted. Hence, they are keeping their labour forces 'tight' and perhpas keeping their rationalisation in place.
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