UK unemployment has risen

The UK is witnessing the highest number of job losses to date, according to the Institute for Employment Studies (IES). IES Research has found that a growing number of people are out of a job and these figures are likely to rise even more this year. So far, the number of people claiming unemployment benefits has risen by 24,400 since February 2008, the Office of National Statistics (ONS) has said.

Due to rising fuel and food prices, analysts have been expecting to see a rise in higher wage settlements, but this does not seem to be the case according to the BBC. The retail industry appears yet to feel the full strain, however due to market conditions and consumers facing mounting mortgage bills and energy costs, it is predicted they soon will. Further job cuts in the retail industry are widely expected in the next two years.

Retail magnate Sir Philip Green told The Times: “People have started to realise this is going to be a long slog. We still haven’t seen a major profit warning. Consumer spending is weakening as people are being careful with their money.”

On the flip side, ONS figures are currently showing the highest number of people in employment to date, but with the rate of employment growth beginning to slow down, some sectors are showing obvious strain.

By Jessica Wilcox