Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/money/article/a531820
Recession looms as UK unemployment at 17-year high
The number of people out of work in the UK rose by 114,000 between June and August to hit 2.57 million, its highest level since 1994.
Markets
UK unemployment has hit its highest level in 17 years as the country flirts with a return to recession.
According to the Office for National Statistics, the number of people out of work jumped from 7.9% to 8.1% in the three months to August. This leaves the total number of people unemployed standing at 2.57 million, the highest since 1994.
The jobs market has been particularly difficult for younger people. The unemployment total for 16-24 year olds hit a record high of 991,000 in the quarter, a jobless rate of 21.3%.
Meanwhile the number of people out of work and claiming benefits rose for the seventh consecutive month, rising by 17,500 to 1.6 million in September.
The news comes after figures showed the UK economy grew by only 0.1% in the second quarter of the year, and after the Bank of England surprised markets by pumping £75 billion into the economy in a bid to fend off recession. Following the move, Bank governor Mervyn King described this as the 'worst financial crisis' ever.
Economists warned that the figures were troubling and a potential harbinger of a return to recession. Chris Williamson of Markit said the jobs market was likely to get worse in coming months. 'Recruitment agencies reported that demand for staff at employers had risen at the weakest rate for two years in September, as business confidence waned in the face of the increasingly gloomy economic outlook,' he said.
'There is clearly very little appetite among companies to take on additional staff while the outlook remains so uncertain,' Williamson added.
Ian Brinkley of The Work Foundation said: 'The main mitigating factor in today’s figures is that total hours worked has remained stable, with most of the job losses being part-time. People still in work seem to be increasing their hours at the same time as the workforce contracts.'
Tools from Citywire Money
More about this:
More from us
Archive
Today's articles
- Market blog: FTSE gains momentum to break 5,400
- Homeserve under investigation by City regulator
- Snap! Greece goes and we’re awash with ‘worthless paper’
- UK inflation drops sharply to 3%
- Citywire Top Stocks Daily News Digest
- Wednesday Papers: Morgan Stanley subpoenaed over Facebook IPO
- Overnight Markets: US stocks erase gains on Greek concerns
- Wonga rapped for accusing customers of fraud





21 comments so far. Why not have your say?
Mr Chris Collins
Oct 12, 2011 at 11:12
We're all doomed!
report thisBig Nigel
Oct 12, 2011 at 11:29
We need to lower the boundaries for benefits.
No one should have to work a 35 hour week.
report thisJim Roberts
Oct 12, 2011 at 12:22
Dylan
The UK economy didn't grow by 1% in the first quarter, it grew at an annualised rate of 1% - a major difference.
report thisMr Chris Collins
Oct 12, 2011 at 12:22
We should stop benefits, that would get these lazy bums back to work.
report thisTyrone Bell
Oct 12, 2011 at 12:31
These figures always mention the high number of youngsters out of work:
16-24 year olds= 991,000 unemployed.
What about the over 24s? Over 1.5 million of them out of work?
The majority of the 16-24 year olds will not have a mortgage to service, a family to feed and possibly be considered on the scrap heap for the rest of their working lives unlike a 50 ish year old who is now unemployed and may never find or be considered for a job again!
I wish I was the unemployed 16-24 year old, most probably still living at home with their parents and so most of whom will still have a roof over their heads and food in their bellies, instead of being the over 50 year old, worried about the employment situation, who dosent have anywhere to go if I cant pay my mortgage!
report thisCrazy Fists
Oct 12, 2011 at 12:36
Back to work!
There is a distinct lack of jobs. A majority of the unemployed would love a job.
report thismikeran
Oct 12, 2011 at 12:37
Leaders of Industry are regularly making the point that many of those leaving school are inadequately equipped in the basics necessary to hold down a job.
Of course this is added to by the general state of the UK economy, with its almost nil growth. But for too long we have seen manufacturing industry , work experience and apprenticeships decline..
Too many place their hope on a University degree as an entry to the higher paid jobs, but again too many degrees are tailored to fit nothing.
report thisjoe stalin
Oct 12, 2011 at 12:51
Recession rubbish another example of media scare mongering. More anecdotal evidence of the fantastic immigration policy we have in this country. jump on a lorry in Europe arrive in the UK sign on get loads of money and get yourselve a home and invite your friends.
simples!
report thisHotrod
Oct 12, 2011 at 13:27
Mikeran makes some fair points. Getting a job does to some extent depend on relevant qualifications. There seems to be a paucity of vacancies which require a degree in classics or philosophy as a pre-requisite. Likewise postmen need to be reasonably literate, and stocktakers numerate.
My experience suggests that a lot of people are applying for jobs with these deficiencies. Also many young people are not interested in doing manual work, so jobs have been taken from under their noses by immigrants. You only have to walk round a manufacturing plant, hotel, or large farm, to confirm this statistic.
report thisAnonymous 1 needed this 'off the record'
Oct 12, 2011 at 13:38
This is good news for wage inflation going forward. Workers (public sector) might start to realise that they are lucky to have a job instead of going on strike.
Keeping wage inflation down is the thing that will kill any hint of hyper inflation talk. Inflation will start to moderate.
report thisAtheist 2
Oct 12, 2011 at 14:08
I see Joe Stalin has been reading the Daily Mail again.
report thisGD-C
Oct 12, 2011 at 15:21
Welcome to the legacy left by 13 years of toxic Labour and its chief architects -Tony Blair, Gordon Brown, Ed balls and Ed Miliband. The latter two clowns who urged Brown to spend and spend in the hope of fending off an electoral defeat, wouldn't recognise a fiscal policy if it slapped them in the face. How Cameron resists the temptation to remind Miliband and his nodding donkey on the 'front bench' Balls, that is they who are responsible for today's figures, I simply do not know.
report thisjoe stalin
Oct 12, 2011 at 15:57
You might have something meaningful to contribute to the discussion Atheist 2 if you ever get past page 3 of the Sun.
report thisMr Chris Collins
Oct 12, 2011 at 16:17
To be fair Joe, the sun is a better read than your comments!
report thisAtheist 2
Oct 12, 2011 at 17:06
Joe Stalin. I read the Daily Telegraph but I do not quote their comments
I make up my own mind. You should try it sometime.
report thisAtheist 2
Oct 12, 2011 at 17:09
Mr Chris Collins that was almost below the belt, but so true, well done.
report thisAnonymous 2 needed this 'off the record'
Oct 12, 2011 at 18:42
According to The Times recently, official figures reveal that over 4 million jobs in this country are filled by people not born here. Assuming this statement is true, it does suggest where our jobless problems lie. Too many people decide to live on benefits; surely time to stop benefits to anyone refusing an offer of work.
report thisjoe stalin
Oct 13, 2011 at 13:18
Anonymous 2 I also understand that a number of people have and are being moved out of the long term benefit programme introduced by the last Government onto the dole so that they become eligible for work. Would be nice if somebody from the Government would actually stand up and say so rather then let the media add two and two together and come up wit whatever number they want.
report thisGD-C
Oct 13, 2011 at 17:25
Joe
Is this the same government that put an Afghan mother and her five children to live in a £1m house,whilst her husband employed himself as a taxi driver and lived elsewhere? Is this the government which allowed Labour controlled Councils to spend taxpayers money on housing immigrant families in properties whose rents local people could only dream of being able to afford. Labour's vote catching policy on unemployment was to keep its voters happy by paying them more on benefits than they could earn working. Labour fostered a cycle of dependancy where no one in a family worked, allowed men to live with and live off women willing to be turned in to human breeding machines which generated a benefits' income of £35,000 a year.
This government should immediately introduce a policy whereby payment of child allowance is restricted to two children whose 'parents' are married s and for just one child in other relationships. This would dramatically reduce the breeding habits of a generation of indiginous and foreign degenerates. No family that has one child, should receive taxpayers money for IVF treatment.
report thisdavey123
Oct 17, 2011 at 19:20
what a load of rubbish you read a few tabloid stories and think everyone is the same what about all the scroungers who are born here who never intend to work a day in their lives
Why dont they give unemployment benefit for say a year then after that offer a manditory job or no benefits
The tories who havent got a clue what their doing and have caused the recession with their cuts. How many small and large businesses relied on council contracts which no longer exist.
The tories have ripped the rug from under the Uk economy and look whats happened
report thisCheryl Mara
Dec 14, 2011 at 13:25
@Muffeiy Really this unemployment figure is much higher, when you consider how many people have been on the sick lists for years, without any work. No wonder the UK is so much in debt
report thisleave a comment
Please sign in here or register here to comment. It is free to register and only takes a minute or two.