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UK unemployment starts to rise again UK unemployment starts to rise again
(about 4 hours later)
Unemployment jumped and average wage rises dropped to their lowest on record in the three months to March, underlining concerns at the slow pace of the UK's recovery. Unemployment jumped and average wage rises dropped to their lowest rate on record in the three months to March, underlining concerns at the slow pace of the UK's recovery.
There was an increase in unemployment of 15,000 in the first quarter of the year while during the same period regular pay rose by just 0.8%.There was an increase in unemployment of 15,000 in the first quarter of the year while during the same period regular pay rose by just 0.8%.
Total pay rises, which include bonuses, came in even lower than average pay rises, said the Office for National Statistics, increasing by only 0.4% at a time when inflation remains stubbornly high at 2.8%.
The worsening unemployment picture sent the jobless rate up from 7.7% to 7.8% and left the total number of people unemployed stuck at 2.52 million.The worsening unemployment picture sent the jobless rate up from 7.7% to 7.8% and left the total number of people unemployed stuck at 2.52 million.
George Osborne has come under increasing pressure to stimulate economic growth from a wide range of critics, though they differ in their remedies especially in areas such as construction. Chancellor George Osborne has come under increasing pressure to stimulate economic growth from a wide range of critics, though they differ in their remedies especially in areas such as construction.
A report for the London Assembly this week found there are 150,000 skilled construction workers in the capital claiming jobseeker's allowance, at a cost of £2.1bn in benefits. A similar picture of empty and half-built construction sites is repeated across the country as the industry, which accounts for 7% of economic activity, remains in the doldrums.A report for the London Assembly this week found there are 150,000 skilled construction workers in the capital claiming jobseeker's allowance, at a cost of £2.1bn in benefits. A similar picture of empty and half-built construction sites is repeated across the country as the industry, which accounts for 7% of economic activity, remains in the doldrums.
Total pay rises, which include bonuses, was even lower than average pay rises, said the Office for National Statistics, increasing by only 0.4% at a time when inflation remains stubbornly high at 2.8%.
Martin Back, UK economist at Capital Economics, said the labour market data provides "something of a reality check" following recent positive news on the economy.Martin Back, UK economist at Capital Economics, said the labour market data provides "something of a reality check" following recent positive news on the economy.
"There was a triple whammy of bad news, with employment in the three months to March down by 43,000 and unemployment, on the ILO measure, up by 15,000. Meanwhile, the squeeze on real earnings has intensified, with average earnings including bonuses falling by 0.7% year on year in March, the first drop since 2009.""There was a triple whammy of bad news, with employment in the three months to March down by 43,000 and unemployment, on the ILO measure, up by 15,000. Meanwhile, the squeeze on real earnings has intensified, with average earnings including bonuses falling by 0.7% year on year in March, the first drop since 2009."
Employment minister Mark Hoban conceded that "there has been a disappointing increase in the headline rate of unemployment, but said other indicators showed the government was making progress. The employment minister, Mark Hoban, conceded there had been a "disappointing increase" in the headline rate of unemployment, but said other indicators showed the government was making progress.
"There are record numbers of women in work, fewer young people unemployed and more vacancies available for those looking for work. We are also seeing continuing falls in the number of people claiming jobseeker's allowance which is positive.""There are record numbers of women in work, fewer young people unemployed and more vacancies available for those looking for work. We are also seeing continuing falls in the number of people claiming jobseeker's allowance which is positive."
The number of job vacancies also rose in the three months to March to 503,000, which is the highest total since 2008, though well down on the 950,000 jobs on offer in 2007.The number of job vacancies also rose in the three months to March to 503,000, which is the highest total since 2008, though well down on the 950,000 jobs on offer in 2007.
The number of people claiming jobseeker's allowance in April fell to its lowest level since May 2011 at 1.52 million, down 7,300 from March 2013 and down 67,800 from a year earlier.The number of people claiming jobseeker's allowance in April fell to its lowest level since May 2011 at 1.52 million, down 7,300 from March 2013 and down 67,800 from a year earlier.
Analysts said some of the drop in the claimant count could be ascribed to the slight improvement in the economic picture this year and the success of benefit offices in shifting workers back into work.Analysts said some of the drop in the claimant count could be ascribed to the slight improvement in the economic picture this year and the success of benefit offices in shifting workers back into work.
Hoban said: "Today's statistics also show that the UK's employment rate, which currently stands at around 71%, compares favourably to US, where it is 67%, and the EU and the eurozone where it is even lower – at 64%." Hoban said: "These statistics also show that the UK's employment rate, which currently stands at around 71%, compares favourably to US, where it is 67%, and the EU and the eurozone where it is even lower – at 64%."