Unemployment in UK rising again

Woman entering a jobcentre

Unemployment in the UK increased by 35,000 in the three months to October to 2.5 million, the Office for National Statistics (ONS) has said.

It was first time that the jobless measure has risen for six months.

The increase pushed the unemployment rate up to 7.9%, a higher rate than analysts had expected.

However, the number of people claiming the Jobseeker’s Allowance in November fell fractionally, by 1,200 to 1.46 million, the ONS said.

The pound dropped half a cent on the news, to $1.573.

The data could also heighten the policy dilemma for the Bank of England, coming only a day after figures showed consumer price inflation had risen to 3.3%, well above the Bank’s 2% target.

In recent meetings, the UK Bank’s monetary policy committee has been split three ways, with one member voting in favour of gradual interest rate rises to head off inflation, while another has voted to increase the Bank’s purchases of government bonds in order to boost the recovery.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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