UK unemployment hits 14-year high of 2.38m
Unemployment climbed by a record 281,000 to hit 2.38 million in the three months to May, the highest level since October 1995.
The bigger-than-expected jump in unemployment, which includes those not claiming jobless benefits, is the largest rise since records began in 1971.
The jobless rate has climbed to 7.6 per cent — the highest since January 1997.
However, the number of people claiming jobless benefits rose by a smaller than expected 23,800 in June, lower than May’s increase of 30,800. Analysts had expected a rise of around 41,000.
Economists said that despite this lower than expected rise in the claimant count, the rise in unemployment was unlikely to stop. Vicky Redwood, UK economist at 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.”
Unemployment is expected to continue growing until next year, when economists predict it will peak at more than 3 million.
The number of people out of work has already risen by 753,000 over the last year alone.
Source/Full Story: Times Online



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