Britain's average pay rises, but so does unemployment

Latest data shows wages increase by more than 3% but jobless rise causes concern that employers have to shell out more due to dearth of skills

Britain enjoyed a bumper pay rise in spring, with average earnings 3.2% higher in the period from March to May 2015 than a year earlier, highlighting the increasing skills shortages forcing employers to offer higher wages.

But the better earnings figures, from the Office for National Statistics, came as unemployment rose for the first time in two years, sparking fears that Britain's booming labour market has lost some of its momentum.