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Unemployment fall not echoed in North East

The UK received some welcome news on the jobs front this week when unemployment fell for the first time in almost two years.

Unemployment in the North East, however, was up by 7,000 to 126,000.

The number of people out of work in the UK in the three months to November fell by 7,000 to 2.46 million, although the rate remained unchanged at 7.8%.

The number of people claiming Jobseeker’s Allowance was down for the second month in a row in December, dropping 15,200 to 1.61 million, the biggest monthly fall since April 2007.

Other figures revealed a 16,000 fall in the number of 16 to 24-year-olds out of work to 927,000, a jobless rate of almost 20%.

Long-term unemployment - those out of work for more than a year - increased by 29,000 to 631,000, the highest figure since 1997.

Work and Pensions Secretary Yvette Cooper said: “The jobs market is still tough for a lot of people, but the drop in unemployment and youth unemployment is very welcome.

“It means 450,000 fewer people are out of work than everyone expected last spring.

“However, we know that things will still be difficult and unemployment is still likely to rise over the next few months. That is why we are determined to keep increasing the help and support to get people into jobs and training.”

John Wright, chairman of the Federation of Small Businesses, said: “The figures show that more people than ever before are working part-time and are trying to find full-time employment.

“For the economy to grow, this needs to be made a reality. The run-up to Christmas is a busy time for any business and many small firms, especially in the retail sector, will have taken on seasonal staff to help them through the busy Christmas period.

“However, small businesses need help to make these seasonal jobs into permanent jobs and the Government must lend a helping hand if small firms are to really tackle the challenge of rising unemployment.”

Mark Stephenson, policy adviser at the North East Chamber of Commerce (NECC) said: “The economic outlook may be improving but the employment situation remains very serious indeed.

“With much of the turnaround in the economy resulting from stimulus packages from the Government and the Monetary Policy Committee (MPC), there is concern for the longer term recovery of the economy.

“It is essential that a clear path back to economic stability is outlined soon in order to safeguard future investment in the UK.”

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