UK unemployment up for fourth month in May

The number of Britons out of work and claiming benefits rose for the fourth month running in May, the longest string of increases…

The number of Britons out of work and claiming benefits rose for the fourth month running in May, the longest string of increases since December 1992, as the closure of carmaker MG Rover spurred big job losses.

The Office for National Statistics said today claimant count unemployment rose by 13,200, much more than the 5,000 expected.

Meanwhile, April's rise was revised up to 10,800. The ONS said jobs in the West Midlands where the Rover factory was based had been particularly hit.

Unemployment in that region alone rose by 6,000 in May, with local authorities in the immediate vicinity around the car factory being particularly affected.

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The ONS said the trend in the claimant count was now rising. Separately, the ONS said average earnings growth in the three months to April rose to 4.6 percent from 4.5 per cent.

This was slightly weaker than forecast but is still above the level that some commentators say the Bank of England is comfortable with.

BoE Governor Mervyn King cited labour costs as one of the key upside risks to inflation earlier this week.

PA