–Jul Claimant Count Unemployment +37,100 m/m; Rate 4.9%
–Jun Average Weekly Earnings +2.6% vs +2.3% in May
–Jun Average Weekly Earnings ex bonuses +2.2% vs +2.1% in May
–Apr-Jun ILO Unemployment +38,000 Q/Q; Rate 7.9%
–Jun Claimant Count revised to +31,300 m/m from +24,500

LONDON (MNI) – Claimant count unemployment rose for the fifth
consecutive month in July and at the fastest pace for more than two
years, figures released by National Statistics showed Wednesday.

The number of people claiming Job Seekers Allowance rose 37,100
between June and July, the largest increase since May 2009, pushing the
unemployment rate up to 4.9% from 4.8% previously.

The latest rise was larger than the median forecast from City
economists which was for a 20,000 increase on the month.

There was also an upward revision to the June figures which now
show the claimant count rose 31,300 on the month against the initially
estimated 24,500 increase.

The figures will heighten fears that in spite of ultra loose
monetary policy, UK economic growth remains stagnant and is certainly
not strong enough to stop jobs being shed at a rapid pace.

National Statistics said that part of the increase was still due to
a rise in women joining the claimant count, having been moved off
lone-parent benefits, although they made clear this could not account
for all of the latest rise in the count. The number of women on the
claimant count rose 15,600 between June and July.

There was, however, a 21,500 rise in the men joining the claimant
count, the highest increase since May 2009.

Adding to the gloom were the ‘official’ ILO unemployment figures
which showed their first increase since January this year. The number of
ILO unemployed rose 38,000 in April-June compared with the previous
three month period, significantly higher than the 10,000 rise forecast
by City economists. The ILO unemployment rate increased to 7.9%.

Employment growth also slowed, rising by 25,000 in the latest three
month period.

There was a moderate pick up in average earnings growth in the
latest month, although most of this was due to a boost from higher
bonuses, with regular pay growth remaining very subdued.

Headline average weekly earnings growth rose to 2.6% in the three
months to June compared with a year earlier, from 2.3% in May. This was
above the median forecast for a rise of 2.4%.

Bonus growth hit 22.4% on the year in the private sector in June,
with strong rises in finance and business services, manufacturing and
construction. National Statistics said that June was not usually a big
month for bonuses and was unable to offer any explanation of why growth
was so strong this year, except that June last year had been fairly
weak.

Excluding bonuses, regular pay growth rose to 2.2% in June from
2.1% in May, below the median forecast of 2.3%.

–London bureau: 00 44 207 634 1655 e:mail: ukeditorial@marketnews.com

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