Number of unemployed rises in first three months of 2008
Wednesday, 14 May 2008 11:19
Number of unemployed and those claiming benefits rises
Government figures show 14,000 more people were unemployed over the last three months compared to the previous quarter.
Although the unemployment rate was unchanged at 5.2 per cent in the three months to March 2008, an extra 14,000 were unemployed over the period.
Total unemployment now stands at 1.61 million, according to the Office for National Statistics (ONS).
During the last three months, 111,000 people reported they had been made redundant, unchanged from the last survey.
In addition, there were 7,200 more people claiming benefits in April compared to last month, taking the total number of claimants to 806,300.
The government pointed to a rise in employment levels over the period, with 13,000 jobs added over the three months taking the total workforce to 31.62 million.
James Purnell, secretary of state for work and pensions, said: "With overall numbers in employment continuing to grow the economy remains well placed to resist global economic pressures.
"Although I am disappointed to see a rise this month in the number of people claiming unemployment benefit, the employment rate remains high and with over 680,000 vacancies in the labour market we are determined to help people get the right skills to fill those jobs and contribute to the economy."
However, a recent survey of employers have pointed to potential widespread job losses as the economy slows.
The quarterly Chartered Institute of Personnel and Development (CIPD)/KPMG Labour Market Outlook (LMO) survey of UK employers, released today, finds overall demand for staff has weakened since the end of last year – and is weaker than in any of the spring surveys since the series began in 2004.
Dr John Philpott, chief economist at CIPD, said the labour market is still strong, with recruitment levels still higher than redundancies.
But he added: "However, with employers in 'wait and see' mode it remains possible that falling confidence in the outlook for the economy might still trigger a wave of job cuts.
"If so, the tipping point in confidence could result in a sudden avalanche of redundancies and quickly transform the current relatively benign jobs scene. A further early cut in
interest rates would be advisable to limit the chances of this outcome."