Jobless level climbs to 2.47m as workers pay the price of recession
Unemployment remains on track to hit 3 million next year, or about one in ten of the workforce, trends in official data suggest, fuelling fears of a "jobs-lite" recovery.
The Office for National Statistics said yesterday that the unemployed total stands at 2.47million, up 210,000 in the three months to July, the highest in almost 15 years. The jobless rate rose 0.7 percentage points to 7.9 per cent. Youth unemployment among 16 to 24 year olds has reached 947,000. Around 34 per cent of school leavers cannot get work.
The numbers seeking Job Seeker's Allowance rose by less than the headline figure, by 24,400 to reach 1.61 million in August.
There was also a disturbing increase in the number of people categorised as "economically inactive" – that is those who have in effect left the labour force, and are not seeking a job. That rate rose to its highest since 1997, and the numbers have increased dramatically over the past year, with some offering euphemistic reasons for doing so. The ONS say that those describing themselves as "students" is up 154,000 on 2008, although the number of student places has increased by only 13,000.
Howard Archer, UK economist with IHS Global Insight, said: "Unemployment still seems likely to reach 3 million in 2010 or early 2011 and there remains a very real danger that it could rise even further. Even if the economy does return to growth in the third quarter, it is still unlikely to be strong enough to prevent further losses."
Paul Kenny, the general secretary of the GMB, added: "More workers, particularly young workers, are paying a devastating price for the recession and there is some way to go before unemployment stops rising."
The Work and Pensions Secretary, Yvette Cooper, agreed that it could be some time before the jobless total fell: "We know the evidence from previous recessions suggests that sometimes employers can wait until they feel more confident before they start recruiting again so there can be a lag."
The Organisation for Economic Co-operation and Development said yesterday that "the early stages of the economic recovery are likely to be too muted to result in strong job creation".
- 1 If you weren't afraid of flying before last week... you probably are now
- 2 Israel-Gaza conflict: The secret report that helps Israelis to hide facts
- 3 Students offered grants if they tweet pro-Israeli propaganda
- 4 Lauren Goodger calls for tougher laws on revenge porn after sex tape leaks online
- 5 Iraq crisis: End 'very near' for Christianity after Isis takeover, says Bishop
Israel-Gaza conflict: The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£40000 - £45000 per annum: Ashdown Group: An established professional services...
£600 - £650 per day: Orgtel: Conduct Risk Liaison Manager - Banking - London -...
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£280 - £300 per day + competitive: Orgtel: Test Analyst, Edinburgh, Credit Ris...