UK claimant count in May increased for the fourth month in a row, official data showed Wednesday.
The Office for National Statistics, or ONS, announced that the number of people claiming Jobseeker's Allowance benefit was 819,300, increased 9,000 from April. Claims climbed more than the predicted level of 8,000 but it declined 58,100 from the prior year.
The claimant count rate stood at 2.5% of the workforce in May, same as in April. The rate also came in line with economists' expectations. However, the rate dropped 0.2 percentage points on a yearly basis.
The report showed that there was an increase in the number of employed persons but the employment rate was unchanged in three months to April. The employment rate was stable at 74.9% and the total employment level increased 76,000 over the prior three months.
Meanwhile, the unemployment rate rose 0.1 percentage point to 5.3% in three months to April, slightly above 5.2% as expected. The unemployment level was 1.64 million, up 38,000 over the previous three months.
Average earnings excluding bonuses recorded an annual growth of 3.9% in three months to April, while earnings, including bonuses were up 3.8%. Earnings excluding bonus was expected to rise 3.8% and earnings including bonus grew less than the predicted 4.1%.
According to ONS, manufacturing productivity moved up 2.7% from the previous year and manufacturing unit wage costs increased 0.8%.
Commenting on labor market report, BNP Paribas' economist, Raymond Van der Putten said labor market conditions are softening. Further, Putten said non-farm job growth, according to the payroll survey was close to zero in the first quarter. Putten noted that weakness in the pound has reduced the attractiveness of the UK for foreign workers. The slowing of the migration flow would possibly dampen the impact of the economic slowdown on the UK labor market.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.