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UK jobless level increases again UK jobless level increases again
(30 minutes later)
Unemployment in the UK rose by 12,000 to 1.62 million in the three months to May, the Office for National Statistics (ONS) has said.Unemployment in the UK rose by 12,000 to 1.62 million in the three months to May, the Office for National Statistics (ONS) has said.
The ONS said the number claiming unemployment benefit rose by 15,500 in June to 840,100.The ONS said the number claiming unemployment benefit rose by 15,500 in June to 840,100.
That was the biggest jump since the 71,000 rise in December 1992.That was the biggest jump since the 71,000 rise in December 1992.
As the economy loses steam, employers have cut jobs in the face of rising energy costs, falling consumer confidence and a property slump.As the economy loses steam, employers have cut jobs in the face of rising energy costs, falling consumer confidence and a property slump.
Analysts said the sharp rise in the number of people claiming benefits was a worry.
"The claimant count is the biggest in more than 15 years. While not vastly different from what was expected, it is a sign of things to come over the next year as the economy weakens," said Philip Shaw at Investec.
The jobless total compares with 1.64 million in the three months to April, when 38,000 jobs were lost.The jobless total compares with 1.64 million in the three months to April, when 38,000 jobs were lost.
Some parts of the economy have been hit particularly hard, such as financial and housing sectors.Some parts of the economy have been hit particularly hard, such as financial and housing sectors.
House builders have cut thousands of jobs over the past few months.House builders have cut thousands of jobs over the past few months.
This month, house builders Bovis, Redrow, Barratt and Persimmon announced they would cut more than 2,000 jobs between them.This month, house builders Bovis, Redrow, Barratt and Persimmon announced they would cut more than 2,000 jobs between them.
The latest ONS figures for the three months to May do not include these latest redundancies.The latest ONS figures for the three months to May do not include these latest redundancies.
Analysts are worried that a sharp rise in the cost of food and fuel could lead to higher wage settlements. Annual average earnings growth over the period eased to 3.8% in May from 3.9% in April, the ONS said.
Analysts warned of further misery for consumers in the face of rising fuel and food bills.
"With wages failing to keep pace with the cost of living and unemployment rising, the outlook for consumer spending remains grim," said James Knightley, an analyst at ING.
The rate of inflation hit an 11-year high of 3.8% in May, fuelling speculation that the Bank of England may consider raising interest rates.The rate of inflation hit an 11-year high of 3.8% in May, fuelling speculation that the Bank of England may consider raising interest rates.
It is higher than the Bank's inflation target of 2%.It is higher than the Bank's inflation target of 2%.