LONDON: UK unemployment rose back to four per cent in the three months to the end of May, official data showed Tuesday, as the economy struggles with stubbornly-high inflation.

The unemployment rate increased from 3.8pc in the three months to the end of April, the Office for National Statistics (ONS) said in a statement, dashing expectations for no change.

The rate was back at 4pc for the first time since the start of 2022. Despite the rise, finance minister Jeremy Hunt said Britain’s “jobs market is strong with unemployment low by historical standards”.

The ONS added that pay excluding bonuses had risen at record levels.

“Due to high inflation, however, the real value of weekly earnings are still falling, although now at its slowest rate since the end of 2021,” noted Darren Morgan, director of economic statistics at the ONS.

Hunt insisted Monday there could “be no sustainable growth without eliminating the inflation that deters investment and erodes consumer confidence”.

UK annual inflation has eased in recent months but remains close to 9pc.

It has held far above the Bank of England’s 2pc target for some time, triggering numerous interest-rate hikes from the central bank since late 2021.

Published in Dawn, July 12th, 2023