Unemployment up 31,000 in biggest rise for 18 months prompting fresh concerns over stalling economy

Unemployment jumped by 31,000 in the three months to June
PA

Unemployment jumped by 31,000 in the three months to June — the biggest rise in the jobless total for more than a year and a half.

The number of people out of work increased to 1.31 million over the quarter, raising the unemployment rate to 3.9 per cent, according to the Office for National Statistics.

The blip will raise fresh concerns about the stalling economy as Britain enters the run-up to a potentially disruptive no-deal Brexit in the autumn.

Last week ONS data showed that GDP fell in the second quarter of the year for the first time since 2012.

But today’s figures also revealed that total employment rose 115,000 in the quarter to a record high of 32.81 million, while earnings surged well ahead of inflation, increasing by 3.9 per cent not including bonuses.

Ian Stewart, chief economist at consultancy Deloitte, said: “The days of sharply falling unemployment are behind us, but a tight labour market points to further gains in wages and spending power. Despite a second quarter decline in growth, the UK economy still has momentum.”

Pawel Adrjan, UK economist at recruitment site Indeed, said: “The increase in unemployment is a case of economic gravity finally reasserting itself as Britain’s job creation boom slows.

"The total number of vacancies continues to slide further from the peak it reached at the start of the year, suggesting more employers are holding off on hiring.”

Matt Hughes, deputy head of labour market statistics for the ONS, said: “Employment continues to increase, with three quarters of this year’s growth being due to more women working. However, the number of vacancies has been falling for six months, with fewer now than this time last year.”

Work and Pensions Secretary Amber Rudd said: “More people in work than ever before means more households across the UK are earning a regular income, and millions more receiving a pay boost thanks to wages rising at their fastest in a decade.”

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