Thread: UK unemployment level highest in 17 years

The latest unemployment figures from the Office for National Statistics (ONS) show that overall unemployment in the UK has reached its highest point in 17 years.

Unemployment in the UK hit 2.57 million in August, an increase of 114,000 since June. The unemployment rate now stands at 8.1%.

The figures paint a particularly worrying picture of youth employment. According to the data, the proportion of people between the ages of 16 and 24 currently seeking a job is now 21.3%.

Many experts have claimed that the government’s programme of cuts may be partly responsible for the rise in unemployment. The ONS reported a record dip in public sector employment, with 110,000 jobs being lost in the second quarter – the largest drop since 1999.

Rising unemployment is putting significant strain on the UK economy. The expected benefits of the budget cuts, it seems, may not be seen in the short term. The number of UK people claiming benefits rose from 17,500 to 1.6 million between June and August, putting additional pressure on public finances and on the government’s ability to spark a revival.

The Confederation of British Industry (CBI) called on the government to do more to remedy the situation in the coming months. Said Katja Hall, the CBI's chief policy director, “Today’s unemployment numbers make grim reading, especially for our young people. The continuing rise in youth unemployment is a grave concern for us all".

Dr John Philpott, chief economic adviser to The Chartered Institute of Personnel and Development (CIPD) said, "“These labour market figures are truly horrific, with the economy shedding almost 15,000 jobs each week between June and August. The quarterly rise in unemployment is reminiscent of an economy in recession rather than any kind of recovery and confirms that the private sector just isn’t creating enough jobs at present to offset public sector job cuts.

"With 5.6 unemployed people for every job vacancy the labour market is back to where it was in the depths of recession in 2009 and the underlying problem is getting even worse given that one in three unemployed people have now been without work for over a year. Many more months like this and we’re likely to see the re-emergence of the kind of ‘Gissa Job’ economy that scarred Britain in the 1980s and 1990s".

It is a terrible situation for those out of work in the hardest hit areas. I was looking at a list of areas in the UK and the relevant unemployment for each area, the NE, NW and parts of the Midlands are definitely the hardest hit. The SW and SE are under 4% which goes to show the North/South divide is still very much alive and well.