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Unemployment hits 13-year high at 2.2m
Jonathan Prynn12 May 2009
Hopes of a swift end to the recession were stamped out today as unemployment surged to the highest level in 13 years.
The jobless tally leaped by 244,000 in the biggest quarterly rise since 1981. The total now stands at 2.215 million, or 7.1 per cent — a level not seen since 1996.
Publication of the figures had to be brought forward from their scheduled release tomorrow morning after they were accidentally leaked.
The statistics, which cover the three months to the end of March, show that unemployment in London leaped by 38,000 to 333,000, or 8.2 per cent — one in 12 — of the working population.
In percentage terms only the West Midlands and West Yorkshire and Humberside saw bigger rises. The number of people signing on for unemployment benefit in the capital last month was 206,300, or 4.2 per cent, up 78,000 in a year and 8,800 in a month. The highest rate, 6.5 per cent, is in Tower Hamlets.
Job losses have been worst in industries traditionally over-represented in London. Over the past year 220,000 jobs have gone in finance and business services and 159,000 in distribution, hotels and restaurants. At the same time, manufacturing has lost 128,000 jobs. The only good news was that the number of people registering for unemployment benefit did not rise by quite as much as forecast. Average earnings including bonuses fell 0.4 per cent, the first time they have gone down since records began in 1991.
Economists warned that the jobs cull is almost certain to continue for the rest of the year.
Howard Archer, chief UK and European economist at IHS Global Insight, said: “Despite current mounting signs that the rate of economic decline is moderating substantially, unemployment is a lagging indicator and the extended deep economic contraction seen since mid-2008 is likely to hit the jobs market hard for some time to come.
“Furthermore, even stabilising economic activity would not be enough to prevent unemployment from continuing to rise significantly further. Indeed, we suspect that unemployment is still headed well above three million in 2010.”
TUC general secretary Brendan Barber said: “Some people in the City are already talking of a recovery. But the only recovery in the real world will be when unemployment starts to fall.
“Unemployment is still the country's number one emergency and the Government must use all possible means to address it.”
A number of landmarks in the figures included the number of long-term unemployed passing the half a million mark. Unemployment among 18 to 24-year-olds rose 60,000 to 676,000.
Reader views (8)
Val on behalf of all 'british' people that live in britain 'SHUT UP and GO AWAY'
- C Cusano, Bedford, 13/05/2009 08:19
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Labour supporters don't work anyway so it's job done!
- Steve, London, 13/05/2009 08:08
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2.2 MILLION UNEMPLOYED IN THE UK?
THAT FIGURE SHOULD READ CLOSER TO 5 MILLION UNEMPLOYED.
THIS TIME NEXT YEAR THERE WILL BE 7 MILLION UNEMPLOYED.
TALKING OF SPIN AND WAFFLE FROM DOWNING STREET. TWO WEEKS AGO BROWN ANNOUNCED THAT "EVERY HOME WILL HAVE DELIVERED A LEAFLET EXPLAINING ALL ABOUT SWINE FLU".
REALLY? I HAVE CONTACTED OVER 700 PEEPS RIGHT ACROSS THE UK AND NOT ONE HAVE SEEN ANY LEAFLET ABOUT SWINE FLU.
GORMLESS BROWN IS NOW SPOUTING THAT IF ANYONE DOES NOT FEEL SAFE ON THE STREETS THEY CAN JUST CALL THEIR LOCAL POLICE OFFICER AND WILL BE ESCORTED HOME IN SAFETY.
WHAT UNMITIGATED CLAP-TRAP RUBBISH THAT IS.
I HAVE NOT SEEN A POLICE OFFICER AT STREET LEVEL FOR THE PAST 8 YEARS.
MP's CREDIBILITY IS ZERO. MICHAEL MARTIN'S CREDIBILITY IS ZERO. CIVIL SERVANT'S CREDIBILITY IS ZERO.
TALK ABOUT A BANANA REPUBLIC.
THE UK IS NOW THE WORST POLICE STATE ON THE PLANET.
- Reuben Camara, Morecambe UK, 13/05/2009 07:57
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AIN,T IT SO SAD ALL THOSE POOR PEOPLE LIVING ON £60 per week, and our politicians are so busy feathering their nests they have all forgot about running the country,we are in a sorry deplorable mess and no jobs and delapidatedtown centres , such a shame some people in scotland have been looking for wrok for 25 years now so they will have no chance now due to gordons prudence.
- James Fennessey, london, 12/05/2009 17:57
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#Mike London
They've got some way to go before they top the Tories 4.2m haven't they?
- Val Daniels, Mijas Costa, Spain, 12/05/2009 17:13
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And the rest, add in all the other benefits not just unemployment and we've got to be over 5 million. Although I notice the civil service are balancing their books by making redundancies and then re-employing the same people on contract.
- Bob, Cheam, 12/05/2009 16:37
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LABOURS NOT WORKING!!!!!!
- Arthur Ruse, whitfield, 12/05/2009 16:19
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And yet another new Brown and Labour record set, well done
- Mike, London England, 12/05/2009 16:11
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