Pace of job losses slows in Britain

Unemployment benefits claims in Britain rose by the smallest number in 10 months in May with claims rising by 39,000 to 1.54 million.

Economists had predicted 60,000 new claims would be added to the system, The Times of London reported Wednesday.

Grant Thornton Chief Economist Stephen Gifford said the numbers were "not surprising." "The number out of work is predicted to rise to around three million by the middle of 2010, so today's figures confirm that there is still a great deal of pain ahead, despite the signs that the economy may be stabilizing," he said.

In the quarter, Britain's unemployment rate rose 7.2 peecent, the highest since 1997.

Average earnings rose 0.8 percent, higher than expected, helped by a 3.6 percent increase in government paychecks.

In the private sector, paychecks rose 0.3 percent, The Times said.

Copyright 2009 by United Press International.