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Unemployment in the UK reaches 2.2 million

4:10pm GMT, Tuesday, 12 May 2009

The labour market looks bleak as unemployment continues to rise. The labour market looks bleak as unemployment continues to rise.

The number of jobless in the UK has risen by 244,000 to 2.22 million in the first three months of 2009, according to the Office of National Statistics (ONS).

The outlook for the labour market remains bleak as the latest employment figures show increases in the number of people jobless as well Job Seeker’s Allowance claimants.

The unemployment rate rose from 6.7% to 7.1%, up 0.8% from the previous quarter and up 1.8% or 592,000 over the year.

The quarterly rise in the number of jobless and the actual number of people unemployed is the highest it has been since 1981.

The ONS was due to release the figures tomorrow (13 May), but the data was published a day early by accident. An inquiry will be launched into how the figures were released early.

April 2009 also saw the number of Job Seeker’s Allowance claimants rise substantially; up by 57,100 in one month and now totals 1.51 million – the highest it has been since August 2009.

Redundancies have experienced an increase, rising by 27,000 over the quarter, making the total number for the year 286,000. Average earnings also fell in the past quarter.

The number of job vacancies has also reduced significantly. The number fell by 51,000 over the quarter and by 232,000 over the year. This is the lowest figure since comparable records began in 2001. All sectors have experienced a drop in vacancies with the largest declines in the finance and business categories.

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