The 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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