Rate move
The latest figures have added to the debate about when the Bank of England will raise interest rates from their record low of 0.5%.
On Tuesday, the Bank's governor, Mark Carney, said the point at which rates might rise was "moving closer".
Rising unemployment is usually seen as making the prospect of a rate rise less likely, but the Bank will also be keeping an eye on the acceleration in pay rises.
"Private sector pay growth is approaching rates that would normally start to worry policymakers into tightening policy to avoid wage-price spirals developing," said Chris Williamson, chief economist at Markit.
"However, a fall in employment in the three months to May is a concern which could lead to further hesitation in starting the policy normalisation process.
"Survey data suggest that this drop in hiring is temporary, and that the economy has picked up speed again since the election. If the data continue to strengthen in coming months in line with the surveys, a November rate hike remains very much in the picture."
The unemployment figures are based on the Labour Force Survey, in which the ONS speaks to 60,000 households once a quarter, making it the country's biggest household survey.
Rate moveThe latest figures have added to the debate about when the Bank of England will raise interest rates from their record low of 0.5%.On Tuesday, the Bank's governor, Mark Carney, said the point at which rates might rise was "moving closer".Rising unemployment is usually seen as making the prospect of a rate rise less likely, but the Bank will also be keeping an eye on the acceleration in pay rises."Private sector pay growth is approaching rates that would normally start to worry policymakers into tightening policy to avoid wage-price spirals developing," said Chris Williamson, chief economist at Markit."However, a fall in employment in the three months to May is a concern which could lead to further hesitation in starting the policy normalisation process."Survey data suggest that this drop in hiring is temporary, and that the economy has picked up speed again since the election. If the data continue to strengthen in coming months in line with the surveys, a November rate hike remains very much in the picture."The unemployment figures are based on the Labour Force Survey, in which the ONS speaks to 60,000 households once a quarter, making it the country's biggest household survey.
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