–Sep Claimant Count Unemployment +17,500 m/m; Rate 5%
–Aug Average Weekly Earnings +2.8% vs +2.9% in July
–Aug Average Weekly Earnings ex bonuses +1.8% vs +2.1% in Jul
–Jun-Aug ILO Unemployment +114,000; Rate 8.1%
–Aug Claimant Count revised to +19,100 m/m from +20,300

LONDON (MNI) – Unemployment rose at is fastest pace for more than
two years in the three months to August, while part-time employment fell
sharply, figures released by National Statistics.

The level of unemployment rose 114,000 in June-August compared with
the previous three month period, the largest increase since May-June
2009. This pushed the level of unemployment up to over 2.5 million, the
highest since 1994 and the rate of unemployment up to 8.1%, the highest
since 1996.

Analysts had been expecting a smaller rise of 80,000 and rate of
8%.

There was also a 178,000 fall in the level of employment in the
latest quarter, the largest decline since May-July 2009. Nearly half of
these losses came from employment in those aged 65 or more where 74,000
jobs were lost.

The figures underly the continued weakness in the economy and are
likely to pile further pressure on Chancellor of the Exchequer George
Osborne to loosen the current fiscal squeeze.

National Statistics refused to comment, but this may have been due
to firms shedding older workers before new legislation came in which
bars firms from making workers aged 65 or more redundant on the basis of
age.

Part-time workers were the worst hit with 175,000 jobs lost on the
quarter compared with a smaller fall in full time employment of 56,000
jobs.

Records published last month showed that public sector employment
fell sharply in the second quarter and it appears likely that many of
these recent job cuts have come from the public sector.

The more up to date claimant count measure of unemployment rose
17,500 on the month in September, following a revised 20,300 increase
last month. This pushed the claimant count rate up to 5%, but was below
the median forecast for a larger rise of 25,000 on the month.

Earnings growth remained subdued in August. Headline Average Weekly
Earnings fell to 2.8% from 2.9% in July, below the median of 2.9%.

Excluding bonuses, headline growth in regular pay fell to 1.8% from
2.1%, in line with the median forecast, and the lowest since July 2010.

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

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