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The number of Britons claiming unemployment benefit saw its biggest jump in two years last month, taking the total to the highest since March 2010 and raising concerns about the pace of economic recovery. However, as in past months the broader ILO measure of employment painted a more encouraging picture, supporting the government's contention that private sector job creation will offset the effect of public spending cuts.
The number of people without a job on this internationally comparable measure fell by 26,000 in the three months to May to 2.452 million, the Office for National Statistics said. The jobless rate held at 7.7 percent as expected, and has not been lower in the past 2 years.
Numbers of people claiming jobless benefit rose by 24,500 last month, well above economists' forecasts of an increase of 15,000 and the fourth consecutive monthly rise. Combined with an upward revision to May's benefits figures, this took the total above 1.5 million for the first time in over a year. Average weekly earnings growth remained low, at around half the rate of inflation. The headline measure including bonuses showed an annual rise of 2.3 percent in the three months to May. Analysts had forecast a rise of 2.1 percent.

Copyright Reuters, 2011

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