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13 July 2011
Last updated at 05:12 ET
UK unemployment fell 26,000 in the three months to May to 2.45 million, official figures show.
The unemployment rate was 7.7%, according to the Office for National Statistics (ONS), down from 7.8% in the previous quarter.
However, the number of people claiming Jobseeker's Allowance in June rose by 24,500 to 1.52 million - the biggest such increase in two years.
It follows an upwardly-revised 22,500 rise in the claimant count for May.
The total number claiming unemployment benefits reached its highest level since March 2010, while the claimant count rate held steady at 4.7%.
It is the second month that the claimant count has risen so sharply while the unemployment total - which is based on a separate survey - has fallen.
The ONS said part of the discrepancy between the two measures was due to an increase in the number of women claiming Jobseeker's Allowance due to changes in the benefits system.
"It's still difficult to assess where the labour market is overall," said Victoria Cadman, economist at Investec, adding that the employment figures were reassuring.
The total number in employment rose 50,000 versus the previous quarter to 29.28 million - the highest total in more than two years.
Average earnings, excluding bonuses, rose a faster-than-expected 2.1% in the three months to May, although this was still well short of the inflation rate.
On Tuesday, the ONS reported consumer prices inflation of 4.2% in June.
"This is a combination of data that is really all going in the wrong direction - higher earnings and higher [claimant count] unemployment," said George Buckley, UK economist at Deutsche Bank.
The data suggested that companies had held onto employees during the recession, he said, meaning that they would have less capacity to hire while the recovery remained weak.
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The unemployment rate was 7.7%, according to the Office for National Statistics (ONS), down from 7.8% in the previous quarter.
However, the number of people claiming Jobseeker's Allowance in June rose by 24,500 to 1.52 million - the biggest such increase in two years.
It follows an upwardly-revised 22,500 rise in the claimant count for May.
The total number claiming unemployment benefits reached its highest level since March 2010, while the claimant count rate held steady at 4.7%.
It is the second month that the claimant count has risen so sharply while the unemployment total - which is based on a separate survey - has fallen.
The ONS said part of the discrepancy between the two measures was due to an increase in the number of women claiming Jobseeker's Allowance due to changes in the benefits system.
"It's still difficult to assess where the labour market is overall," said Victoria Cadman, economist at Investec, adding that the employment figures were reassuring.
The total number in employment rose 50,000 versus the previous quarter to 29.28 million - the highest total in more than two years.
Average earnings, excluding bonuses, rose a faster-than-expected 2.1% in the three months to May, although this was still well short of the inflation rate.
On Tuesday, the ONS reported consumer prices inflation of 4.2% in June.
"This is a combination of data that is really all going in the wrong direction - higher earnings and higher [claimant count] unemployment," said George Buckley, UK economist at Deutsche Bank.
The data suggested that companies had held onto employees during the recession, he said, meaning that they would have less capacity to hire while the recovery remained weak.
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