The Office for National Statistics (ONS) records show that that unemployment on the UK is still on the rise with the number increasing by another 244,000 in the first three months of 2009 to reach 2.22 million.
In percentage terms, this puts the number of people that are currently without employment at 7.1%. Claims for unemployment benefits also rose to 1.51 million in April alone.
The rise in the number of unemployed this quarter is now at its highest since 1981.
The figures were released early accidentally at 2pm this afternoon despite being scheduled for release at 9.30am tomorrow. The ONS has launched an enquiry into how this came about.
Chief UK economist for the Societe Generale, Brian Hilliard, said the following about the figures: “The standout numbers are the big increase in the unemployment rate at 7.1%.
‘Sharp Acceleration’
“We had been looking for 6.9% so that is a really sharp acceleration.”
Yet more signs of a recessive economy have also begun to show in the statistics. The average earnings including bonuses have also shrunk by 0.4% between January and March compared with the same period last year. This has not happened since 1991, but the ONS say this is primarily due to lower bonuses.
Though, the average earnings, excluding bonuses, grew by 3.0% in the same three month period, down 0.2% from the previous quarter.
Vicky Redwood of Capital Economics said: “The smaller than expected rise in the UK claimant count in April is good news, but the rest of the labour market figures are pretty awful.”
In the beginning three months of this year, there were approximately 455,000 job vacancies. This is 51,000 lower than in the final quarter of 2008 and 232,000 lower than this time last year.
Unemployment ‘Certain To Deteriorate Further’
Mr Hilliard added: “I fear that the unemployment rate… is certain to deteriorate much further. We’re looking at figures of 10% around the turn of the year.”
Minister for Employment, Tony McNulty has admitted that the figures are ‘very bad’, but says we should take some comfort from the fact that the rate of increase has slowed.
He said: “I’m not saying green shoots or anything like that by any means but I am saying that whilst we have not reached the bottom, the rate of decline appears to have slowed.”
The general secretary of the TUC added: “Unemployment is the country’s number one emergency and the government must use all possible means to address it.
“Some people in the City are already talking of recovery. But the only recovery in the real world will be when unemployment starts to fall,” he concluded.
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