Jobs in the services sector, are likely to be more sheltered from the US slowdown.

On this, the government's preferred measure, the number of people out of work, fell by over 40,000 in the three months to February.

Equally, employment figures show that the number of people in work has risen by over 100,000 since last autumn.

Global slowdown

But with the global economy slowing down, how much longer can unemployment carry on falling?

Already, some UK companies which trade with the US have warned that their profits have been hit by the weakening of that economy.

And just this week, telecom equipment manufacturer Marconi has announced job cuts, while US phone giant Motorola seems set to close a Scottish plant employing 3,200 people.

Certainly, further job losses in sectors such as manufacturing and technology sectors which are most exposed to the US could be on the cards.

It usually takes several months for a downturn in demand to affect employment, so there could be more damage in the pipeline.

Even before the US slowdown, manufacturing employment was already in decline, with the loss of 100,000 jobs in the last year.

Thriving service sector

But over four-fifths of jobs are located in the services sector, which is likely to be more sheltered from the US slowdown.

Employment prospects in this sector remain fairly bright.

While unemployment could reach a turning point within the coming months, service sector growth could provide a cushion which could limit any increase.

Certainly, there are one or two areas where service sector jobs could be under threat.

The recent turmoil in the stock markets has led to speculation over job losses in financial services, perhaps running into several thousands.

And the foot and mouth crisis, rail disruption and floods have meant a downturn in business for the tourist industry.

This sector employs 7% of the workforce, and has enjoyed robust growth in recent years, but any job losses sustained here may only be temporary.

Once the foot and mouth outbreak is over, the fortunes of this sector are likely to be restored.

Steady growth

But in the main, experts do not expect to see a surge in unemployment and the UK is widely expected to escape recession, thanks to a sturdy domestic economy and falling interest rates, meaning that the wider jobs market should remain robust.

A survey released by the Manpower employment agency indicates that the demand for workers is set to rise in most areas and in most sectors.

In the past, this survey has been a very accurate indicator of future employment trends.

A poll of independent economists suggests that unemployment could end the year back above the one million mark.

But they say that a rise of several hundred thousand people out of work - a common occurrence in previous downturns - by then is unlikely.