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Increase in unemployment sees 2.5million out of work

Written by on 14 April, 2010

In the three months leading up to February the number of people out of work rose by 43,000, a report from the Office for National Statistics has revealed.

The figures show a huge increase of 369,000 people being unemployed since the same period last year. The findings present a gloomy outlook for the current labour market as the total number of those in unemployment has now hit 2.5 million, the highest total since the last quarter of 1994. From December 2009 to February 2010, the unemployment rate reached 8 per cent – an increase of 1.2 percentage points from last year and the highest it’s been since back in September 1996. Young workers and graduates have remained affected, with 0.726 million of those aged 18-24 unemployed – no change from the previous quarter. However, unemployment levels for 16-17 year olds increased from 4000 to 0.203 million and those above retirement age increased to an all time record high of 0.043 million. It seems there is also a division between the sexes when it comes to employment, with most full time workers being male and the vast majority of part time workers being female.

The employment rate for the three month period leading to February 2010 fell to 72%, a decrease of 0.3% and the lowest since 1996. The report shows that both full time and part time workers have been affected, with a drop of 59,000 for full time employees and 30,000 less part time workers. Unsurprisingly this has seen a dramatic increase in the number of employees and self employed workers relying on part time work to keep their heads above water; 1.05 million are resorting to extra shift work because full time jobs are so scarce.

The worrying report has revealed that these shattering figures are not just short term concerns; in the highest figures seen since summer 1997, the number of people unemployed for more than twelve months increased by a huge 89,000 over the quarter, hitting a high of 726,000 – showing that long term unemployment is still rife.

Financial industry experts have warned that these figures could mean increasing numbers of people will be stuck in long term unemployment, with such a fragile jobs market making it impossible for them to find work. On a more positive note, economic advisors have predicted that although the wider picture is looking a little bleak, it is likely that there will be an increase in employment in the City as the financial sector has seen a rise in profits. The report also showed that redundancy rates were down, as were claims for job seekers allowance – though this may be due to people being unable to claim or simply choosing not to. There was also a small increase in vacancies since the last quarter, with 9000 jobs becoming available since December 2009.

While these latest figures don’t bear much hope for job seekers, the publication of The Sunday Times Rich List shows that the collective wealth of Britain’s richest people has risen by a third in the past year despite the problems of the economy. The country’s multimillionaires are now worth a massive £335.5 billion, up 29% on last year’s figures. The huge rise is the biggest in the survey’s twenty-two year history, and also shows a North/South divide with 513 of the top 1000 entries living in the capital or the south east. The findings of the survey are sure to raise controversy with the upcoming general election, with parties suggesting higher tax rates and spending cuts are to be put in place.

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