Unemployment soars to 2.3 million

UK unemployment rose to 2.261 million in between February April, according to figures released today from the Office for National Statistics (ONS). This represents the highest level of unemployment in the UK since November 1996.

The number of people claiming unemployment benefit rose by a total of 39,000 in May, while the jobless rate rose 7.2%. However, the increase in less than some analysts were predicting, suggesting that the recession may have ceased to hit quite as hard as it has in recent months. With the headline figure so high, however, those struggling to meet the cost of household bills and mortgage payments are unlikely to find comfort in this.

Commenting on the figures, David Kern, Chief Economist at the British Chambers of Commerce, said:

“These jobless figures are slightly better than feared, but the overall situation remains grim. Jobs are being lost relentlessly and many businesses are facing a major threat to their skills base. It is much too early to talk about the end of recession and it is important not to withdraw the policy stimulus before there is firmer evidence that the economy has stabilised.”

Meanwhile TUC General Secretary Brendan Barber warned that youth unemployment is a serious issues that needs to be addressed:

“Youth unemployment is now at its highest rate for 15 years. And it will get far worse when millions of fresh school leavers and graduates start looking for work in the coming weeks. Unemployment leaves a permanent scar on young people’s lives and Government must do all it can to stop joblessness blighting another generation’s lives.”

“The Government’s job guarantee should soon start to help young people who lost their jobs at the start of the recession – it’s exactly the right priority. But people leaving school or college this summer will need help with training and advice long before the 12 months that they will have to wait for the jobs guarantee.”