Partner Article

Region hit by rising unemployment

Unemployment in the North East has risen 14.3%, according to official figures. In the three months to June the UK has hit the worst out of work total since 1995, official figures have shown.

The jobless total in the region went up by 15,000, leaving 120,000 people unemployed.

Some 220,000 jobs were lost in the UK overall, leaving 2.44 million people out of work - an 8% increase, with the impact most severe in Scotland, with a 19.7%. increase.

The number of people out of work for more than a year also showed a hike, with an increase of 36,000 leaving the level at an 11-year high of 543,000.

James Ramsbotham, NECC chief executive, said: “It is impossible to hide from the fact that these figures make grim reading. NECC has repeatedly called on the Government to set up a short-time working initiative to enable firms to keep hold of skilled staff during this difficult period.

“The deadline for action has passed, we urgently need to see the right tools put in place to enable companies to keep staff, to cope with the downturn and to build stronger foundations for the future. If we lose skilled staff now it will have an extremely detrimental impact in the long-term.”

Sarah Green, Regional Director, CBI North East, said: “These numbers are grim, but broadly in line with expectations. They would have been a lot worse but for the way that flexible working practices and pay freezes and cuts have limited the damage.

“The most recent surveys of employment intentions look a bit less dire than was the case a few months ago, and the pace of deterioration in the labour market may have slowed a little. But as the Bank of England suggests today, it is possible that pay moderation may have only delayed, rather than limited, further increases in unemployment. So it is too soon to call the turn, and we still expect the unemployment rate to hit three million early next year.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .