Employment falls by 43,000 in first quarter

Figures released by the ONS have revealed that the unemployment rate rose 0.1 per centage points to 7.8 per cent in the first quarter from the quarter previous. The employment rate simultaneously dropped by 0.2 per cent to 71.4 per cent compared with the last quarter of 2012.

Households will be further squeezed as total pay growth stood at just 0.4 per cent, while inflation is currently at 2.8 per cent, eating into real wages.

Jobless claims looked slightly better dropped by 7,300 in April while analysts had expected claims to fall by just 3,000. The claimant count rate slipped from 4.6 per cent to 4.5 per cent.