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Sixth straight rise in UK unemployment

Unemployment in the UK increased by the highest levels since 1992 in July and average earnings showed the slowest growth in five years.

Official figures for last month showed that the number of people unemployed there rose for the sixth month in a row.

An extra 21,000 are now claiming benefits - the total number is 864,700 - the biggest jump since December 1992. The figure is well above the predicted increase of 17,500.

Average earnings including bonuses grew an annual 3.4% in the second quarter, the weakest rise since August 2003 and below forecasts for an increase of 3.6%.

The weaker than expected data is likely to add to growing expectations that the next move in interest rates will eventually have to be down as the British economy risks falling into its first recession since the early 1990s.