-June Claimant Count Unemployment +6,100 m/m; Rate 4.9%
-May Average Weekly Earnings total pay +1.5% vs 1.4% in Apr
-Mar-May ILO Unemployment -65,000; Rate 8.1%
-May Claimant Count revised to +6,900 from +8,100

LONDON (MNI) – The level of claimant count unemployment rose for
the second consecutive month in June, although a change to the benefits
system is likely to have exaggerated the increase, figures released by
National Statistics showed Wednesday.

Stripping out this benefit effect on the claimant count suggests a
better labour market picture than expected, although the figures could
also be flattered by extra hiring for the Olympics. Overall, the trend
in the claimant count looks to be broadly flat.

The claimant count rose 6,100 on the month between May and June
with the rate steady at 4.9%, in line with the median forecast. Claims
by men fell 1,900 on the month, while women rose 8,000. National
Statistics said the increase in the number of women claiming Job Seekers
Allowance (JSA) in June was likely to have been affected by a change in
the eligibility rules for Lone Parent Income Support which would have
led to more claiming JSA.

There was also a downward revision to the initially reported May
rise of 8,100 to 6,900.

The ILO unemployment data, which lag the claimant count, showed
another large fall of 65,000 in the three months to May compared with
the previous three month period, but these decreases look set to slow in
line with the claimant count data over the next few months. The
unemployment rate eased to 8.1% from 8.3% previously.

There was good news on employment with the level rising 181,000 in
the latest three months. National Statistics said there was some limited
evidence that the Olympics had boosted employment numbers.

Pay growth remained very subdued with Average Weekly Earnings
growth ticking up to just 1.5% in the three months to May compared with
a year earlier, from 1.4% in April. This was in line with the 1.5%
median forecast.

Regular average weekly earnings, which exclude bonus payments,
remained steady at 1.8%, a little below the 1.9% median forecast.

-London bureau: 00 44 207 862 7491 e:mail: puglow@marketnews.com

[TOPICS: MABDA$,M$B$$$,MT$$$$,MABDS$]