Action call as unemployment soars

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Unemployment soared by 164,000 in the quarter to August, a jobless rate of 5.7%, up by 0.5% over the three months.

The grim figures were compounded by an announcement of 800 manufacturing job losses in Scotland at US-owned computer chip firm Freescale Semiconductor.

The quarterly increase in the number of people out of work, including those not eligible for benefit, was the highest since the summer of 1991, when it jumped by 186,000.

The number of people claiming Jobseeker's Allowance increased by 31,800 in September to 939,900, the eighth consecutive monthly rise and the highest figure for almost two years. The total has now risen by 104,900 over the past year.

Employment levels have also slumped - down by 122,000 in the latest quarter to 29.4 million, the biggest three-monthly fall since 1993.

Latest data from the Office for National Statistics also showed a 46,000 drop in the number of manufacturing jobs to a record low of 2.87 million.

The unemployment rise of 164,000 people represents a 10.1% increase compared with the last quarter.

Paul Kenny, general secretary of the GMB union, said: "Left to itself things are likely to get worse and there is more gloomy news on the way. The Government should use public spending to create jobs on projects like Crossrail and other transport infrastructure, on social housing schemes and items like ships and aircraft for the armed forces."

Employment minister Tony McNulty said that a further £100 million would be made available to help people who are losing their jobs.