The rate of UK unemployment rose to 4.2% in the three months to June from 3.9% in the previous three months, the Office for National Statistics said
Meanwhile wages are growing at their fastest level since records began rising excluding bonuses in the three months to June, at 7.8pc.
Workers in the private sector were handed pay rises averaging 8.2pc when excluding bonuses, the largest on record outside of the pandemic.
Public sector staff were given a 6.2pc boost, the highest since 2001.
Commenting on the figures, Ben Harrison, Director of the Work Foundation at Lancaster University, a leading think tank for improving working lives in the UK:
“Today’s figures shows that record wage growth is being driven by finance and business services sector at 9.4%, while workers in the public sector (6.2%) and other sectors like retail (6.3%) are still seeing inflation of 7.9% wipe out any pay increases they are receiving. The cost of living crisis is far from over for the majority of workers.
“With unemployment rising by 109,000 this quarter and an increase in companies filing for insolvency, people in low paid and insecure work will be nervously looking over their shoulders – Work Foundation research shows that 42% of workers in insecure work expect to lose their jobs within the next year.
“Meanwhile economic inactivity due to long-term sickness stands at a record 2.58 million.
“We are potentially still over 12 months away from the next General Election, and action to tackle these issues can’t wait. In particular, the Government should signal now that it intends to extend cost of living support this winter, while also strengthening job security and flexibility via a new Employment Bill.”
