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Government hits target of 1 million jobs but unemployment continues to rise

Economists are expressing cautious optimism following the release of new jobs figures.

More than 22,000 new positions were created in April, while the overall unemployment rate rose to 5.6%.

HSBC Chief Economist Paul Bloxham tells Ross Greenwood demand is strong.

“We’ve got strong labour demand… but a lot of that labour demand is being met sufficiently by people entering the labour force, new people entering the labour force.”

Mr Bloxham tells Ross while the participation rate has been high, wage growth continues to stagnate.

“Even though we’ve been creating all these jobs and we’ve had this demand, it’s been sufficiently met by new supply in terms of the new entrants into the labour market, which has kept wages growth quite suppressed.”

Listen to the full interview below