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.
Employment was 29.71m Jan-March, down 43k from Q4. Starting to look like jobs bounce-back ended. Real wages collapsing even faster.— Allister Heath (@AllisterHeath) May 15, 2013