Britain's unemployment figure rose by 38,000 to 2.49 million in the three months to June, the Office for National Statistics (ONS) said on Wednesday.

The increase came as quite surprising and disappointing because the figure had been generally expected to fall further after dropping for four consecutive months.

GBP/USD was underperforming earlier today, falling to a low of $1.6354 following the BoE dovish minutes. During the 3-4 August monetary policy meeting, MPC member Adam Posen voted to expand the asset purchase programme by 50 billion to £250 billion. The minutes also acknowledged that there remained a significant margin of spare capacity (high unemployment) in the UK economy and that inflation is likely to fall below target in the medium term due to a slowing in world demand growth.

The ONS also said number of people claiming Jobseekers' Allowance increased by 37,100 in July to 1.56 million, the largest jump since May 2009. This number has been rising for three months in a row.

The number of unemployed people between 16 and 24 years old rose by 15,000 to 949,000 in April-June, leaving a youth unemployment rate of 20.2 percent.

In the meantime, people with part-time work for not being able to find full-time jobs increased by 83,000 to 1.26 million.

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Shayne Heffernan

Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.

Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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