Weather Tonight: 4°c Partly Cloudy Night Morning: 8°c Cloudy

Business

Job centre queue
Growing queue: the latest unemployment figures show a record increase

Unemployment rate jumps to highest since 1971

Lucy Tobin
15 Jul 2009


Unemployment in the UK rose to the highest level since 1997 in the three months to May, hitting 2.38 million.

Figures published by the Office for National Statistics today show the biggest quarterly increase in joblessness since records began in 1971. The proportion of unemployed Britons now stands at 7.6%, overshooting economists' expectations of a 7.4% rise.

However, separate figures also published today showed that the number of people joining the dole queue in June was less than expected. Data from the Office for National Statistics showed that there were 23,800 extra claimants of unemployment benefit last month. Economists had predicted an increase of 41,000.

Analysts said that jobless figures will stay high for soem time. Vicky Redwood, of Capital Economics, said: “We doubt that unemployment will start falling again until GDP growth has got back towards its trend rate — and that is unlikely to happen for a long time yet.”

The latest data is bad news for Gordon Brown, according to Graeme Leach, chief economist at the Institute of Directors. He said: “Unfortunately for the government, unemployment will peak at three million plus just before the next General Election in 2010.”

Reader views (17)

 Add your view

Calm down everyone, Keith Price is correct.
This is a blip, as unemloyment will skyrocket when deflation really takes hold.
Thanks Gordon Brown and Labour!

- Dave Davies, Basingstoke, Hants, 15/07/2009 22:10
Report abuse

This is a mere blip. Well done Gordon Brown, you are doing a great job!!

- Keith Price, Luton, 15/07/2009 21:10
Report abuse

The HOME Secretary ALAN JOHNSON ,states that he will NOT put a curb on Immigration and does not lose sleep over the fact that the population could climb to over 70 million.
So I think the unemployment figures will continue to rise steeply for a long time.
Although on continued immigration, I think the people of England should be asked if that is what they want.

- Ezza, lancashire, ENGLAND, 15/07/2009 21:10
Report abuse

At least the numbers of those unemployed were not a deliberate ploy by this Government,like they were under Thatchers reign.

- Henry Houseman, London, 15/07/2009 21:10
Report abuse

Remember the Tory adverts of 1979?

"Labour isn't working."

Then again they never did!

- Adam, Harrow, UK, 15/07/2009 21:10
Report abuse

This is a mere blip. Well done Gordon Brown, you are doing a great job!!

- Keith Price, Luton

Another neo-marxist, still living in a world of delusional denial.

- Frank, Dorchester Dorset, 15/07/2009 21:10
Report abuse

Brown is heeping inflation well under control, and that is what really counts

- Keith Price, Luton, England, 15/07/2009 21:10
Report abuse

Now this is comedy...

"This is a mere blip. Well done Gordon Brown, you are doing a great job!!

- Keith Price, Luton"

You must be off your rocker if you seriously think El Gordo is doing a good job. A good job at employing a scorched earth policy perhaps. The man is a liability, he needs to be removed quick smart!

- M, London, 15/07/2009 21:10
Report abuse

I would be really interested to see the split between Scotland and England, a further split between men and women and split between people with UK born grand parents and the rest.

Any bets that the majority out of work are white, English, middle-class men ?

- Jimmy, London, 15/07/2009 21:10
Report abuse

And 1,650.00, yes 1,650.00 a DAY coming to our shores to stay. We are doomed, doomed.

- Grim Reaper, Hell, 15/07/2009 21:10
Report abuse

Well its go a fair bit to go up yet I reckon - I've said it here before many times - wait till all those graduates and school leavers sign on - but then the Govt has probably got a route to squirrel those away under another statistics blanket - lets face it the "true" number has probably passed the 3 million mark already, take out any seasonal working staff in agriculture over the autumn and then downsizing retail after Christmas (and I bet this year will be a shocker) by feb next year unemployment will easily hit 4 million, IMHO

- Wallytrader, London, 15/07/2009 21:10
Report abuse

What ha happened to all the government initiatives announced in a fanfare of publicity by Gordon Brown? Nothing. It was all talk to fool us.

- Simon Ellis, London E8, 15/07/2009 21:10
Report abuse

Hmmm 1971 when Ted Heath had inherited the mess left by Harold Wilson. It always ends in high spending, unemployment, and taxes with labour.

- Edward, Geneva, Switzerland, 15/07/2009 21:10
Report abuse

I think you'll find that unemployment figures are closer to the 4 million mark they seem to be discounting the the folk who are unable to claim benefit, that country is a joke the laughing stock of the rest of the world, I'm so glad i no longer live there

- Viktor, USA cHICAGO, 15/07/2009 21:10
Report abuse

I work in France and recently returned to the UK for a break, my first visit since Christmas. It really hit me how bad things are. It isn't so much the poverty and the unemployment which is obvious in the UK - all you have to do is walk around any city centre and that hits you square in the face. It is also the disgusting litter everywhere, the drunken youths and the terrible transport system. The UK is in a shocking state.

- Richard, Lyon, France, 15/07/2009 21:10
Report abuse

Well this is the reality of our materialistic attitudes over the past few years. Can I or you really heap the blame on the government, Banks etc and truly not look at ourselves?
Many over reached, some ran before they could walk and a few was jealous of thy neighbour. Basic principles of life went out of the window when extra credit hit our wallets....I know many who have joined this queue and reality bites very hard!

- Jade, London, England, 15/07/2009 21:10
Report abuse

'Figures published by the Office for National Statistics today show the biggest quarterly increase in joblessness since records began in 1971'.......and what do the spivs in the City think of this? The FTSE 100 is up some 2%, one of the biggest rises for months. Why? Because their friends at Goldmans are to make billions in pay and bonuses so banking as a rip off is back! Unless you're one of the pampered few you can start to enjoy life on £60 per week, few employment opportunities and a future of soup kitchens and charity shop clothing. Fair Britain? I don't think so.

- Bobby Smith, london, 15/07/2009 21:10
Report abuse


Add your comment

 

Terms and conditions Make text area bigger You have  characters left.

We welcome your opinions. This is a public forum. Libellous and abusive comments are not allowed. Please read our House Rules.

For information about privacy and cookies please read our Privacy Policy.


 

 

  • Slump looms in eurozone as economy takes a dive Euro Europe's lingering debt crisis has pushed the eurozone closer to recession as the beleaguered single currency bloc's economy shrank for the...
  • Sports Direct is on right track Mike Ashley Sports Direct is on track to hit its "super-stretch" profit targets this year, passing the first hurdle that could see it hand founder Mike...
  • Bank may turn off printing presses as inflation drops Mervyn King The Bank of England's latest £50 billion burst of quantitative easing may be the last time it needs to resort to the printing presses
  • Online orders on mobiles lift Domino's Pizza Domino's Pizza UK said its online sales have powered ahead to account for more than half of delivered sales
  • Debt deadline: Greece on brink Greek protests Hopes were rising that Greece will sign up to the first €130 billion (£109 billion) bailout from the European Union and International...
  • Frothy profits at Heineken Beer The economy might be in dire straits but Brits still love a pint down the pub
  • French banks face battering on exposure to Greek debt Jean-Laurent Bonaffé French banks look set to take one of the biggest haircuts on Greek debt as the country's largest, BNP Paribas, has said it had raised its...
  • Thorntons calls in a former Gunner to help turnaround Keith Edelman The chocolatier Thorntons has turned to the former boss of Arsenal football club to turn around its fortunes
  • LandSecs £1bn joint venture for Victoria A £1 billion-plus redevelopment is on the way at Victoria station
  • Morgan Crucible results surge on emerging market growth Morgan Crucible reported highest-ever full-year results, helped by strong performance across both its divisions, and reiterated that 2012 growth would be driven by new products and emerging markets
  •  
    Market Roundup
    WEDNESDAY UPDATE

    Barclaycard's exit leaves CPP with an identity crisis

    Bye bye Barclaycard. Nearly a year since the FSA started investigating CPP over its sales techniques, the identity theft protection firm touched a new, all-time low today after admitting it was losing one of its most high-profile clients

    More