-May Claimant Count Unemployment +8,100 m/m; Rate 4.9%
-Apr Average Weekly Earnings total pay +1.4% vs 0.9% in Mar
-Feb-Apr ILO Unemployment -51,000; Rate %
-Apr Claimant Count revised to -12,800 from -13,700

LONDON (MNI) – Claimant count unemployment in May posted its first
rise since February, a sign that the recent economic turmoil has hit the
labour market, according to figures released by National Statistics
Wednesday.

While the less timely ILO data show unemployment continuing to fall
and employment growing strongly, the renewed rise in the claimant count
could prove to be a turning point with growth set to remain weak ahead.
The data are also likely to reinforce the growing expectation that the
Bank of England will carry out further Quantatative Easing at the July
Monetary Policy Committee meeting.

The claimant count, which measures the number of people claiming
Job Seekers Allowance, rose 8,100 on the month in May following a
revised 12,800 fall in April. Analysts had expected to see a small fall
of 4,400 on the month.

The number of men claiming Job Seekers Allowance rose 8,700 on the
month, while women fell 600.

Data in recent months has rather surprisingly showed the claimant
count falling from a peak of 1.61 million in February. Analysts have
long forecast that unemployment would rise this year, and these latest
data seem more in line with the current poor rate of economic growth.

The official Labour Force measure of unemployment, based on the
ILO measure, fell 51,000 in the three months to April compared with the
previous three month period, although was still up 185,000 on the year.

There was also a strong increase in employment, which was up
166,000 in the latest three months, the largest gain since June-August
2010.

Average weekly earnings growth rose to 1.4% in the three
months to April compared with the previous year, from 0.9% in
March, the largest rise since December, but still at very low levels. It
was, though, well above the median forecast for a 0.9% rise.

Regular average weekly earnings ticked up to 1.8% from 1.6%, in
line with the median forecast.

-London bureau: 00 44 207 862 7491 e:mail: puglow@marketnews.com

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