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UK unemployment jumped to a two-year high in the three months to the end of June, official data showed Tuesday, as the country grapples with high inflation and a cost of living crisis.
The number of people out of work increased to 4.2 percent compared to 4.0 percent in the three months to the end of May, the Office for National Statistics (ONS) said.
The ONS said the rise was mainly generated by an increase of people unemployed for up to six months.
UK annual inflation currently stands at 7.9 percent, the highest among G7 nations.
The UK finance ministry noted that Britain's unemployment rate was lower than that of Canada, France, Italy, Spain and the Euro area.
While the unemployment rate is the highest since the period from July to September 2021, the ministry added that it remains "low by historical standards".
"The fall in employment in the three months to June and further rise in the unemployment rate will be welcomed by the Bank of England as a sign labour market conditions are cooling," said Ruth Gregory, deputy chief UK economist at Capital Economics.
"But with wage growth still accelerating, this supports our view that the Bank of England will deliver one more 25 basis point rate hike before it brings its tightening cycle to a close," she added.