–Jan claimant count unemployment +2,400; rate 4.5%
–Oct-Dec ILO unemployment +44,000 q/q; rate 7.9%
–Dec total weekly earnings +1.8% 3m y/y vs +2.1% in Nov
–Dec regular weekly earnings +2.3% 3m y/y vs +2.3% in Nov
LONDON (MNI) – Claimant count unemployment rose in January for the
first time in four months, a sign that the public spending cuts may well
be starting to hit the level of joblessness, according to figures
released by National Statistics Wednesday.
Claimant count unemployment rose 2,400 on the month in January
following a revised 3,400 decline in December. Analysts had expected to
see a 5,000 fall in January.
Most economists expect unemployment to rise over the coming months
as the public sector spending cuts start to bite hard, and these data
may well be the start of an upward trend.
The ‘official’ ILO measure of unemployment rose 44,000 in the three
months to December pushing the rate up to 7.9%, the highest since
Jan-March 2010 and above the median forecast for an increase for a rise
of 25,000.
Employment also fell again, declining by 68,000, with the
employment rate falling to 70.5%, also the lowest since Jan-March 2010.
The latest figures leave the Bank of England facing a difficult
decision on interest rates. While comments from Bank of England Governor
Mervyn King yesterday suggest the BOE may be ready to soon raise
interest rates, due to the high level of inflation, doing so against a
backdrop of rising unemployment will prove unpopular and politically
sensitive.
While consumer price inflation rose to 4% in January, latest data
shows average earnings growth remains subdued. Headline weekly earnings
rose 1.8% in the three months to December compared with a year earlier,
down from 2.1% in November.
The latest fall was mainly due to lower bonus payments this year
compared to last year in the financial sector.
Excluding bonuses, weekly earnings growth remained steady at 2.3%.
–London bureau: 00 44 207 862 7491; email: drobinson@marketnews.com
[TOPICS: MT$$$$,M$B$$$,MABDS$]
