Jobless stats are highest in twelve years
UK UNEMPLOYMENT hit a 12 year high of 2.26m during the three months to April, but the increase in benefit claimants in May was less than expected.
Data from the Office of National Statistics (ONS) showed that the number of people claiming jobless benefit rose by 39,300, its lowest rate in almost a year and well below forecasts of 60,000. The total number claiming jobseeker’s allowance is now 1.554m.
The wider measure of unemployment shot up 232,000 to 2.26m in the three months to April. This total is the highest since November 1996.
Analysts say there could be about 3m people out of work by next year.
Average earnings growth excluding bonuses rose by 2.7 per cent in the three months to April, its weakest rate since records began in 2001.
Meanwhile, Bank of England (BoE)policymakers acknowledged recent data on the UKeconomy had been encouraging but stuck with gloomy projections published in May, minutes of this month’s policy meeting showed yesterday.
The Monetary Policy Committee (MPC) meeting showed members voted to keep interest rates at a record low of 0.5 per cent and maintain the bank’s £125bn quantitative easing programme. No arguments were advanced for either increasing the pace of money creation or for scaling it back.
“Overall, the risk of a continued sharp contraction in output in the near term had receded somewhat,” the minutes said. “However, there was no reason to conclude that the medium-term outlook for the economy, and thus inflation, had changed materially.”
The central bank’s quarterly assessment in May suggested a painful recession in Britain would pull inflation below target for a considerable time.