TUC in warning over unemployment

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The union organisation said the current total of 400,000 could rise for the next year, while total unemployment could hit two million.

The TUC also warned that difficulties getting people back into work could be worsened by the Government's latest welfare reforms.

Officials said toughening the benefits regime for lone parents and the disabled will place extra pressure on overstretched welfare services and could add to the long-term unemployment total.

TUC general secretary Brendan Barber said: "Employment levels have remained high despite the recent economic turbulence and are nowhere near the dark days of 1992, when nearly three million people were unemployed.

"However, the TUC is concerned that unemployment has been sneaking up in the last few months and it's up to unions, employers and the Government to halt and reverse this trend as soon as possible.

"With unemployment rising, people are looking to the Government for a response and economic measures will be far more welcome than yet another round of welfare reforms.

"All the tabloid-friendly tough talk on benefit claimants will backfire on the Government when the numbers of people out of work, off benefits and sliding further into poverty start to mount."

The TUC said rising unemployment levels made the case for an interest rate cut even stronger.

Head of economics and social affairs Adam Lent said: "Poor growth and falling consumer confidence are a far greater risk to the economy than inflation, which is still relatively low. The Bank of England can play a key role in helping to reinvigorate the economy by cutting interest rates this month."