British unemployment rate rises in July

The number of people out of work and claiming unemployment in Britain rose 2,800 in July in what was the sixth rise in a row.

Although the figure was less than predicted, the rise still marks the longest stretch of increases since the economic slump of 1992.

The total number of people out of work - including those not claiming benefits - rose by 27,000 to 1.4 million.

Average earnings were up 4.2 per cent on the year, remaining at a rate that still has no significant pressure on inflation.

The Bank of England, which cut the interest rate by 0.25 per cent earlier this month, cited a softening of the labour market as a reason for doing it.