The UK’s latest unemployment figures do not mirror the upbeat sentiment in surveys and economic analysis.

The number of people out of work and claiming benefits rose 5,800 to 950,900 in May – up 97,600 on a year earlier. The claimant count has risen for 14 of the past 15 months. The total number of people unemployed was 1.61m in the three months to April 2006, up 77,000 on the previous quarter. This takes the unemployment rate up to 5.3%, the highest since September 2002. Vacancies fell 9,200 to 594,100.

The number of jobs in manufacturing fell to 3.05m, the lowest since records began. However, the total number of jobs increased to another record, 30.98m.

The UK employment rate is still among the highest in the world. Dr John Philpott, the chief economist of the Chartered Institute of Personnel and Development, said:  “The UK is the most successful large economy in the EU – its emerging ‘Anglo-Social model’ is demonstrating that economic flexibility can go hand in hand with social progress.”

He said a report last week from the Organisation for Economic Co-operation and Development should be seen as an endorsement of the British model of tackling structural unemployment. But he said the UK needs to do more to reduce core joblessness, increase labour productivity and stem rising income inequality. 

Philpott added: “Deficient education and training and remaining high levels of inactive jobless people mean more must be done to boost productivity and raise the incomes of the poorest in society. Much will depend on government and business to pursue a flexible Smart Working policy agenda together.