The number of people out of work rose higher than some economists were expecting. Employers across the country are being urged to find ways to bring more people back into the workplace after new data revealed unemployment is on the rise.
The jobless rate jumped to 4.2% in the three months to February, according to the Office for National Statistics (ONS) – the highest level for nearly six months and up from 3.9% in the three months to January. Most economists had been expecting the rate to only edge up slightly to 4% in the quarter.
The official figures also showed regular wages growth, excluding bonuses, falling back once again, to 6% in the three months to February. 
The British Chamber of Commerce (BCC) is calling on the government and businesses to help by investing more in skills, removing barriers to work and ensuring job seekers are well prepared to succeed in the workplace.
“Employers offering fairer and more flexible workplaces are often more successful at attracting and retaining talent in a competitive labour market,” said Jane Gratton, deputy director public policy at BCC.
“However, we are concerned by the growing number of people not looking for work, with a large chunk of those out of action due to long-term health issues. More must be done to help people with ill health stay in work and to help employers understand how best to support them.
“Until we get more people permanently back into the workplace then the upside risks of higher inflation and interest rates will remain.”
However, wages appear to be on the rise thanks to falling inflation, the ONS said. Real regular wages rose by 2.1%, which is the highest for almost two-and-a-half years.
Liz McKeown, ONS director of economic statistics, said: “Recent trends of falling vacancy numbers and slowing earnings growth have continued this month, albeit at a reduced pace.
“At the same time, we are now seeing tentative signs that the jobs market is beginning to cool, with both a fall in the headline employment rate from our survey and a drop in the total number of people on payrolls from HMRC data.”
