The number of Britons claiming jobless benefits rose in July by the largest amount since 1992 and average earnings in the three months to June rose by the weakest amount in five years, official data showed today.
The Office for National Statistics said the claimant count rose for a sixth consecutive month by 20,100, after an upwardly revised increase of 20,000 in June. That was the biggest jump since December 1992 and above forecasts for a 17,500 rise.
Average earnings including bonuses in the three months to June grew an annual 3.4 per cent, the weakest since August 2003 and below forecasts for a rise of 3.6 per cent.
The figures indicate a weakening economy is taking its toll on the labour market and helping to keep a lid on wage growth, despite headline inflation running at more than twice the Bank of England's 2 per cent target.
Policymakers have been concerned that rising living costs could drive wage demands higher and make it harder to maintain price stability in the economy.
The weaker than expected data could therefore boost expectations that the next move in interest rates will be down.
The internationally recognised ILO unemployment figure rose by 60,000 in the three months to June - the biggest rise since mid-2006 - taking the rate up to 5.4 per cent.
Reuters