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Job market hit by economic slowdown
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The economic slowdown hit the jobs market when the number of people claiming Jobseeker's Allowance rose at the highest rate for two years, fuelling a big rise in unemployment.
Hundreds of job cuts were also announced at Gatwick Airport and by Lloyds TSB adding to the gloomy news and leading to union calls for fresh Government action.
The so-called claimant count went up by 7,200 in March to 806,300, the third consecutive monthly rise and the biggest monthly increase since April 2006. The last time the count rose for three months in a row was two years ago, said the Office for National Statistics.
The total number of unemployed, including people not eligible for benefit, increased by 14,000 in the three months to March to 1.61 million, the highest since the end of 2007.
The last time both sets of jobless figures increased at the same time was September 2006.
Manufacturing jobs continued to reach a record low, down by 27,000 in the latest quarter to 2.9 million compared with a year ago, the worst since comparable records began in 1978.
Despite the increase in unemployment, the number of people in work increased by 117,000 in the three months to March to 29.54 million, a record high, reflecting an increase in the working-age population. There were 22 million people in full-time jobs, up by 84,000 from the end of last year, and 7.5 million part-timers, a rise of 33,000.
Work and Pensions Secretary James Purnell said: "With overall numbers in employment continuing to grow, the economy remains well placed to resist global economic pressures.
"I am pleased to see the number of people claiming key out-of-work benefits such as incapacity benefit and income support has fallen over the last year as more and more people make the most of the opportunities available.
"Although I am disappointed to see a rise this month in the number of people claiming unemployment benefit, the employment rate remains high and, with over 680,000 vacancies in the labour market, we are determined to help people get the right skills to fill those jobs and contribute to the economy."
