Jobless Total Up As Income Squeeze Tightens

Written By Unknown on Rabu, 17 April 2013 | 18.54

The unemployment total has risen for the second month in a row while average pay increases were found to be at their weakest on record.

The Office for National Statistics (ONS) said the number of people without work rose 70,000 in the three months to the end of February to reach 2.56 million - pushing the jobless rate up to 7.9%.

The number of people in work fell by 2,000 over the period to just under 30 million - the first time the figure has dipped since autumn 2011.

There were 900,000 out of work for more than a year, an 8,000 increase on the three months to November, while the number of unemployed 16 to 24-year-olds rose by 20,000 to 979,000.

However, those claiming unemployment benefit fell by 7,000 in March.

While the jobless figures suggested a reversal in the resilience of the UK labour market amid the UK's weak economic growth, it was the pay statistics that will most worry those who are seeking a pick-up in consumer spending to boost output.

Pay, excluding bonuses, rose by 1% between November and February compared to a year earlier which was the smallest on record, the ONS said.

With CPI inflation currently measured at an annual rate of 2.8%, the pay figure demonstrates that prices are continuing to rise at a faster pace than wage growth at a time when energy bills and many other costs have soared.

Employers have been limiting pay increases as a way of managing to keep hold of staff amid the flat-lining economy.

The move has been cited by some economists as a key reason why unemployment levels fell last year: companies wanting to be ready for when recovery came.

While the Government hailed falling jobseeker's allowance claims it admitted there was much still to do to help get people back to work.

GMB union general secretary Paul Kenny said: "The Chancellor should heed IMF advice to change course to grow the economy to end this needless waste of human talent."


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