Rachel Reeves dealt another brutal economic blow as unemployment spikes across UK

The rate of UK unemployment increased to 4.7% in the three months to May, from 4.6% in three months to April, the Office for National Statistics said. The report also a quarterly drop of 56,000 in the estimated number of vacancies, to 727,000.

Some employer may be choosing not to recruit new workers or replace ones who have left, the ONS suggested. The news will come as a bitter blow to Chancellor Rachel Reeves, barely a year after she moved into Number 11 Downing Street. Helen Whately MP, Shadow Work and Pensions Secretary, said: “Unemployment going up for the ninth month in a row on Labour's watch is a disgrace.

“It is the latest in a litany of dreadful economic news – coming off the back of stoked inflation and depressed growth stats.

"These are more than just statistics, each and every job loss is a devastating blow to hardworking families across the country.

"With record taxes already biting, the employment rights bill looming and the prospect of even more painful tax rises to come in the autumn, this is a shock but not a surprise.

"Worse is yet to come under this punishing Labour government.”

Key points from the ONS data:

• Annual growth in employees' average earnings for both regular earnings (excluding bonuses) and total earnings (including bonuses) was 5.0%
• Annual growth in real terms, adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH), was 1.1% for regular pay and 1.0% for total pay
• Using the Consumer Prices Index excluding owner occupiers' housing costs (CPI) to adjust for inflation, annual growth in real terms was 1.8% for regular pay and 1.7% for total pay
• Annual average regular earnings growth was 5.5% for the public sector and 4.9% for the private sector
• The wholesaling, retailing, hotels and restaurants sector showed the strongest regular annual growth rate

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