Unemployment rises by 25,000

The number of people out of work has increased by 25,000, according to figures released by the Office for National Statistics.

The latest labour market data showed that:

  • unemployment rose by 25,000 in the 3 months from April to June 2015
  • employment fell by 63,000 compared with the preceding 3 months
  • youth unemployment rose to 16.1% from 15.9%.

John Cridland, director general of Confederation of British Industry, said:

“It is disappointing to see employment falling, caused by a drop in the number of people working part-time.

“And while the overall pace of pay growth has remained steady, it has reduced slightly in the private sector, where growth in regular pay has slowed and bonus payments have fallen.

“With the new national living wage forcing pay rises from early next year, the government will need to keep a close eye on employment figures to ensure it minimises the negative effect of locking some people out of work.”

David Kern, chief economist of the British Chambers of Commerce, said that the UK job market “remains robust” despite the fall in employment:

“Overall, these figures are a timely reminder that the UK recovery is still in need of care and attention and we cannot take any unnecessary risks.

“With average earnings growth relatively stable and inflationary pressures subdued, it is clear that what British businesses need is a period of stability without any threat of interest rate increases for the time being.”

Michael Martins, economic analyst at the Institute of Directors, said that the figures were not a “cause for alarm”:

“Britain has entered a new stage of recovery, with job security on the rise and wages continuing to grow ahead of inflation.

“Business and consumer confidence is high, meaning more people are switching from part-time to full-time work, fewer people have to work on temporary contracts or to take up second jobs, and the number of job-seekers is also down.

“Moreover, the overwhelming majority of people who left employment were over 65, showing they now feel confident and secure enough to retire.”