Jobless up for first time in year

By PATRICK HOSKING
Updated:

 

THE headline jobless figure rose for the first time in 12 months today, perhaps marking the end of an eight-year period in which unemployment has fallen to levels not seen since the 1970s. Average earnings growth slowed a notch to 4.4%. Claimant-count unemployment in October rose by 4,300 to 951,100, giving a rate of 3.2% of the workforce.

The more reliable International Labour Organisation measure of unemployment, which includes jobless not yet claiming benefit, has been climbing for several months as the slowdown intensifies.

Average earnings for the three months to October slowed to 4.4% - just below the 4.5% which the Bank of England sees as the maximum by which pay rates can grow before sparking inflation.

Analysts said the earnings figure was slightly greater than expected, but would not prevent further cuts in UK interest rates. The Bank of England cut base rate last week by a half-point to 4%.

The oil price slid this morning on worries that Opec members may struggle to agree production cuts in Vienna today. The December Brent crude contract fell 66 cents to $20.33. Kuwaiti oil minister Adel al-Subaih said any reduction by Opec countries should be conditional on a proportionate cut by Russia.

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