Member Article

Unemployment rises to 2.5 million

Unemployment rose to 2.52 million between October and December 2012, but was down 92,000 compared with a year earlier.

According to the latest Labour Market Statistics unemployment stood at 7.8% of the economically active population as the number of people in employment fell by 43,000 during the period.

Youth unemployment was down 17,000 as the unemployment rate for 16 to 24-year-olds stood at 20.7%. The ONS noted that increasing numbers of young people going into full-time education increased the unemployment rate.

The number of people claiming Jobseeker’s Allowance during April was down 7,300 from March and down 67,800 from the previous year.

Average weekly earnings including bonus payments rose by 0.4% compared with January to March 2012, the lowest growth rate since the March to May 2009 period.

Neil Carberry, CBI Director for Employment & Skills, said: “Given the challenging economic conditions at the end of last year, it’s unsurprising that we’re now seeing fewer people in work.

“What’s encouraging, however, is that economic conditions seem to be improving and that full time jobs are still being created.

“With these figures showing the highest number of vacancies since 2008, this reflects businesses’ more positive view of the year ahead.”

TUC General Secretary Frances O’Grady said: “These jobs figures are troubling. There are now more people out of work today than when the coalition took office three years ago.

“Those in work are taking a hammering in their pay packets with wage growth down to just 0.4 per cent, while prices rise far more quickly. It’s no wonder the economy is struggling when people in work are getting poorer every month.

“Rather than try to spin their way out of bad jobs figures, the government must tackle economic stagnation and rising unemployment head on by investing now in new homes, better schools and more roads and rail lines to create demand in the economy and spur on better job creation.”

John Salt, Website Director at totaljobs.com: “Economic indicators continue to be mixed, which just goes to show that the UK continues to bump along the bottom - with few jobs being created – and we’re far too susceptible to small shocks. The Government will argue that the recovery is a marathon not a sprint but, in either case, we are barely off the start line.”

This was posted in Bdaily's Members' News section by Tom Keighley .