UK unemployment rate has jumped

jobs outlook for graduates 150The unemployment rate for people claiming jobseekers allowance has risen in July

The amount of people claiming jobless benefit has seen its largest increase in more than 18 months as the labour market reflects the stagnating economy. The Office for National Statistics commented that the number of people claiming the jobless benefit rose by 37,000 in July, which is the largest monthly rise since May 2009.

The amount of claimants now stands at a total 4.9% with 2.49 million people unemployed, which is an increase from 7.7% to 7.9%. This data is the direct opposite to the 3 months prior where unemployment dropped by 26,000 and the outlook for jobs looked set to recover.

There is also a lack of increase in pay to match the rate of inflation that now stands at 4.4% in the 12 months to July. "However, the flip-side [to the weak wage growth] is that it means that real pay is falling at an annual rate of 2.2%, which is one of the reasons we expect consumer spending to remain subdued in the coming months," said Chris Williamson, chief economist at Markit.

"With consumer spending accounting for around two-thirds of gross domestic product, it is therefore likely that economic growth will also remain modest at best." Job vacancies have also fallen by 22,000 in the three months leading up to July, with the amount of vacancies being 449,000 which is the lowest since November 2009.

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