UK unemployment total increases

Despite unemployment rising, fewer people are claiming benefits

The number of jobless people in the UK has increased, figures from the Office for National Statistics show.

In the three months from November to January the government's preferred ILO measure of unemployment rose by 22,000 to a total of 1.41 million.

However, the number of people out of work and claiming unemployment benefit dipped by 700 to 813,000 in February.

Meanwhile, average earnings growth remained unchanged in the year to January at 4.4%.

Manufacturing continued to lose shrink, with employment in the sector falling by 93,000 during 2004 as the sector continued to suffer from slow growth.

More jobs

Overall, however, the UK is continuing to add jobs, the ONS said.

Its figures show the employment rate - the proportion of adults in work - rose to 74.9% in the three months to January from 74.7% in the previous three-month period, its highest level since August 1990.

A total of 28.57 million people were in employment during the period - an increase of 127,000 during the three months and 219,000 from a year earlier.

The apparent discrepancy between rising unemployment and the high number of people in work can be explained by an increase in the working population and a fall in those who are economically inactive.

Experts predicted the figures were unlikely to have much impact on the next Bank of England rate setting meeting, as they did not indicate a sharp pick-up in wage inflation which could prompt action.

"The figures showing employment up 127,000 across three months shows employment is performing at a relatively good pace, but the Bank of England will not be too worried as average earnings remain relatively subdued," Investec economist David Page said.