Surprise rise in number of jobless

The number of people claiming unemployment benefit rose by 5,400 last month to 953,000 following another drop in manufacturing jobs, the Office for National Statistics figures showed today.

The rise came despite forecasts of a fall in unemployment levels and reflected the continuing problems of the manufacturing sector as it struggles with exports against a strong pound.

Manufacturing jobs fell by 170,000 in the three months to March to a record low of 3.7 million. Worst-hit were electrical and optical equipment makers and textile and clothing companies.

However the Government's preferred International Labour Organisation total, which includes people not eligible for benefit, fell by 19,000 between January and March to 1.54 million.

The ILO unemployment rate was 5.1 per cent in January to March, unchanged from a year earlier. The jobless rate according to the ONS stands at 3.2 per cent.

Average earnings rose by 2.9 per cent in March, a modest increase of 0.4 per cent on the previous month's figure.