Revealed: record 225,000 lost jobs in last autumn's crash

A total of 225,000 workers were laid off between September and November, almost three times more than in the summer months.

It was the largest number of redundancies recorded in a quarter since records began in 1995.

They came during the first dramatic phase of the financial crisis when thousands of workers lost their jobs in the City after the Lehman Brothers collapse in September.

The slowing economy also claimed tens of thousands of other jobs in the high street, including Woolworths, and in manufacturing.

Today Sainsbury's announced a restructuring of its central support teams, leading to about 200 job losses. Bradford-based conveyancing firm Hammonds Support Systems said it is cutting 200 jobs after a sharp drop in business.

Alan Clarke, economist at BNP Paribas said: "This is a very rapid pace of job shedding. It is still very early days in this recession and there is plenty of bad news in the pipeline."

The sharp rise in redundancies is significant because it is an indicator of how the unemployment total is likely to go up in months to come.

Today's figures show that the unemployment total rose 131,000 to 1.92million, the highest since September 1997, but not as bad as some forecasts. The unemployment rate went from 5.7 per cent to 6.1 per cent.

These figures will not include most of the people who lost their jobs during the autumn and the true figure is almost certain to be over two million already. The number of people claiming job seeker's allowance increased by 77,900 to 1.16million.

Economists are braced for a massive rise in unemployment through 2009, possibly reaching 2.5million by May and three million by the end of the year.

Amit Kara, UK economist at UBS, said: "Although the claimant figure is better than forecast, it still points to a very bleak outlook. I expect to see unemployment rise to 3.2million in 2010." Employment minister Tony McNulty predicted "things could get worse before they get better". Hundreds more job losses were announced this week including 540 at fashion firm Burberry, 158 at failed electrical goods retailer Empire Direct and 820 at food firm Vion. The outlook is particularly bad for school leavers and graduates, with the unemployment rate for 18- to 24-year-olds rising from 13.3 per cent to 14.5 per cent.

There was also bad news from the latest Bank of England report from its regional agents. The report said the picture remained one of "shrinking demand for labour" with firms looking to reduce head counts, cut down on hours worked and extend short-time working hours.

TUC general secretary Brendan Barber said: "There is no disguising how bad today's employment figures are."

'There's nothing out there'

JOBSEEKERS today told of the bleak prospects in the employment market.

Grace Scarlet, 41, a mother-of-four from Fulham returning to work after a long break to have her children, said: "My youngest son is not very well so I need a job that is flexible. I have been trying to train as a bus driver but there are so many stages that it takes about six months. I want to work but there just aren't any jobs out there."

Jamie Menard, an actor from Fulham said: "I have just come back from doing a musical show in Denmark for the last four months. I am used to taking on other jobs to get by but I think it is going to be harder this time."

Paul Cruise, 55, a married father-of-two from Earl's Court, said: "I'm an engineer who has spent all his working life on oil rigs overseas. But I have been out of work for the last six months and I've just been trying to find some construction or landscaping work because I need the money. You've just got to take what you can to survive."

Steve Mumford, 43, from Fulham, said: "I was doing a sales job and I got made redundant a couple of months ago. I'd do anything other than cleaning toilets but I am not hopeful of finding a job soon."

A City insurance broker who did not wish to give his name told how he was made redundant a month ago. He said: "Insurance is actually is counter-cyclical to a downturn but unfortunately it didn't work out for me. Everyone's downsizing."