–Aug Claimant Count Unemployment +20,300 m/m; Rate 4.9%
–Jul Average Weekly Earnings +2.8% vs +2.7% in June
–Jul Average Weekly Earnings ex bonuses +2.1% vs +2.3% in May
–May-Jul ILO Unemployment +80,000; Rate 7.9%
–Jul Claimant Count revised to +33,700 m/m from +37,100

LONDON (MNI) – Unemployment rose at its fastest pace for two years
in the three months to July, as public sector jobs were slashed, figures
released by National Statistics Wednesday.

The official ILO measure of unemployment rose 80,000 in May-Jul
compared with Feb-Apr, the largest rise since the three months to August
2009 and pushing the unemployment rate up to 7.9%.

The latest data appear to show that the cuts to public spending are
beginning to bite hard with public sector jobs being cut.

Overall UK employment fell 69,000 in the three months to August as
a 122,000 fall in part-time employment (the largest fall since records
began in 1992) more than offset a rise of 53,000 in full-time
employment.

National Statistics said that the latest fall in employment could
be explained by losses in the public sector where employment fell by
111,000 in the second quarter, the largest fall since records began in
1999. The figures appear to suggest that public sector part-time
employment has been cut sharply in recent months and by far more than
the layoffs of 14,000 part-time census staff included in the figures.

The more up-to-date claimant count measure of unemployment rose for
the sixth consecutive month in August, by 20,300, on the month, below
the median forecast for a larger increase of 32,000. The claimant count
rise was the smallest since April and left the rate of claimant count
unemployment remained steady at 4.9%, also below the median forecast for
a rise to 5%.

There was a downward revision to the July figures which now show
the claimant count rose 33,700 on the month against the initially
estimated 37,100 increase.

With economic growth stumbling, in spite of ultra loose UK monetary
policy, these latest figures are likely to pile further pressure on
Chancellor of the Exchequer George Osborne to loosen the fiscal squeeze
and provide a boost to the economy.

Earnings growth picked up a little in July but remains at a low
level. Headline average weekly earnings growth rose to 2.8% in July from
2.7% in June, slightly above the median forecast of 2.7%.

Excluding bonuses, headline growth in regular pay fell to 2.1% from
2.3%, in line with the median forecast.

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

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