UK sees rise in jobless total

Unemployment in the UK has increased by 21,000 and earnings growth is running at its highest level for three years, new figures showed today.

Unemployment in the UK has increased by 21,000 and earnings growth is running at its highest level for three years, new figures showed today.

The number of people out of work in the three months to February was 1.69 million, the worst figure since last autumn and up by 120,000 over the year.

The claimant count, which only covers people on jobseeker’s allowance, fell by 9,200 last month to 910,800, the lowest total since the end of 2005.

The count has now fallen for six months in a row and for eight out of the last nine months.

Average earnings increased by 4.6% in the year to February, up by 0.4% on the previous month and the highest figure since March 2004.

The Office for National Statistics said the new figure was fuelled by stronger growth in bonuses in private sectors such as finance.

Earnings growth was 4.9% in private firms, up by 0.4% from the January rate, compared with an unchanged figure of 3.2% in the public sector.

Average earnings in private sector services rose by 5.5%, including bonuses, up by 0.6%, while pay in manufacturing fell back by 0.6% to 3.4%.

Other data showed that the number of people in work fell by 47,000 in the three months to February to 28.9 million, only the second fall in 15 months.

The number of jobs in manufacturing firms continued to be lost, down by 54,000 to 2.97 million in the latest quarter compared with a year ago, the lowest total since records began in 1978.

The number of people classed as economically inactive, including those looking after a relative or who have given up seeking work, increased by 76,000 over the three months to February to 7.93 million, more than 21% of the working age population. The figure is now at its highest for a year.

Around 145,000 people were made redundant in the latest quarter, up by 10,000 on the previous three months and the highest figure since last spring.

There were 4,000 days lost through industrial disputes in February, the lowest figure since last April, although the figure for the year was 788,000 compared with 240,000 in the 12 months to February 2006.

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