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UK unemployment rises and pay growth falls UK unemployment rises and pay growth falls
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The number of people out of work in Britain increased for the first time in seven months in February.The number of people out of work in Britain increased for the first time in seven months in February.
In a signal that the referendum vote in June is having an impact on the economy, the latest labour market report showed that the unemployment total rose by 21,000 in the three months to February to 1.7 million. In a signal that the European Union referendum vote in June is having an impact on the economy, the latest labour market report showed that the unemployment total rose by 21,000 in the three months to February to 1.7 million.
Related: UK unemployment rises for first time in seven months - live updates Related: Job market catches up with the real UK economy
This was the first increase since last August but left the headline unemployment rate unchanged at 5.1%. This was the first increase since last August but left the headline unemployment rate unchanged at 5.1%. The claimant count, which measures people receiving out of work benefits, jumped by 6,700 in March. This is also the first increase since August 2015.
The claimant count, which measures people receiving out of work benefits, jumped by 6,700 in March. This is also the first increase since August 2015.
In a further blow to the government’s efforts to keep the economy growing strongly, wagegrowth including bonuses fell from 2.1% in January to 1.8% . The measure of wages excluding bonuses remained at 2.2%.In a further blow to the government’s efforts to keep the economy growing strongly, wagegrowth including bonuses fell from 2.1% in January to 1.8% . The measure of wages excluding bonuses remained at 2.2%.
Analysts blamed a fall in City bonuses at the end of the financial year for much of the fall, but the economy has relied heavily on consumer spending to keep high street tills ringing and business services growing, so any fall is likely to hit GDP growth in the first quarter.Analysts blamed a fall in City bonuses at the end of the financial year for much of the fall, but the economy has relied heavily on consumer spending to keep high street tills ringing and business services growing, so any fall is likely to hit GDP growth in the first quarter.
Almost a third of the increase in jobs over the last year have been among the self employed, the Office for National Statistics said. The rise in employment was 262,000 to 26.56m compared to an increase of 120,000 in self employment to 4.64m. Almost a third of the increase in jobs over the last year have been among the self employed, the Office for National Statistics said. The rise in employment was 262,000 to 26.56 million compared with an increase of 120,000 in self employment to 4.64 million.
ONS statistician Nick Palmer said: “It’s too soon to be certain, but with unemployment up for the first time since mid-2015 - and employment seeing its slowest rise since that period - it’s possible that recent improvements in the labour market may be easing off.”ONS statistician Nick Palmer said: “It’s too soon to be certain, but with unemployment up for the first time since mid-2015 - and employment seeing its slowest rise since that period - it’s possible that recent improvements in the labour market may be easing off.”