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UK jobless rises 10,000 as earnings growth accelerates | |
(35 minutes later) | |
UK unemployment edged up to 1.82 million in the May to July period, up 10,000 from the previous quarter. | |
Earnings, which have been slow to grow even as unemployment has come down, grew 2.9% excluding bonuses, the fastest rate of growth since 2009. | Earnings, which have been slow to grow even as unemployment has come down, grew 2.9% excluding bonuses, the fastest rate of growth since 2009. |
The unemployment rate was 5.5%, the Office for National Statistics (ONS) said, unchanged from the previous quarter but down from 6.2% last year. | |
There were 31.09 million in work, up 42,000 from the previous quarter. | |
When measured against the same period a year ago the total number of people in employment was 413,000 higher. | |
Including bonuses, average weekly earnings growth grew by 2.9%, although this was lower than the 3.3% growth rate seen in the three months to May. | |
The employment rate for those aged 16 to 64 was 73.5%, unchanged from the previous quarter but higher than the 72.8% rate in the same period a year ago. | |
The rise in wage growth strengthens the hand of those who are arguing for higher interest rates from the Bank of England. | |
Chris Williamson, Chief Economist, Markit said: "The long-awaited upturn in pay, which has been the missing element of the UK's economic recovery, looks to be finally upon us, reviving the prospect of a rate hike by the end of the year. | |
"Strip out the public sector and private sector pay rose at an annual rate of 3.4% (both including and excluding bonuses) in the three months to July. | |
"This is a rate of increase that would normally worry policymakers into a pre-emptive hike in interest rates to avoid upward wage pressures feeding through to higher inflation." | |
Chancellor George Osborne said: "It is welcome news that pay packets are rising and jobs are being created. With wages up 2.9% over the year and inflation low, working people have received the fastest real-terms rise in over a decade. | |
"At 73.5%, the employment rate is the highest it has been." |