UK March to May unemployment rises slightly less than expected - ONS

UK public sector net borrowing fell in June, although May's total was also revised downwards, the Office for National Statistics reported on Tuesday.

The UK borrowed £15.99 billion in June, down from £20.00 billion in May, which was revised downwards from £23.29 billion. June's total was around £300 million below the Office for Budget Responsibility's forecast, the ONS said, citing "lower inflation-linked debt interest costs."

Borrowing for the year ended June was £57.6 billion or 1.9% of GDP, down £3.7 billion or 6.0% year-on-year. However, it was £2.7 billion above the OBR forecast, "partly reflecting differences in provisional public corporations data."

The UK ILO unemployment rate for people aged 16 years and over was estimated at 4.9% in the three months ended May, up from 4.7% in the previous year but down from 5.0% in the previous quarter. FXStreet-cited consensus had predicted another 5% increase.

The LFS employment rate for people aged 16 to 64 years was estimated at 75.1% for the March to May quarter, up from 75.0% on-quarter but down from 75.2% year-on-year.

The number of people employed in the period increased by approximately 147,000, accelerating from the previous quarter's increase of around 100,000.

Average earnings excluding bonuses grew by 3.4% annually in the same quarter, unchanged from the prior quarter and in line with consensus. Including bonuses, average earnings rose 4.3%, down from 4.4% and below consensus of 4.5% growth.

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