Unemployment on the rise
Unemployment on the rise
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Wednesday, 12, Apr 2006 12:30
The number of Britons out of work soared to the highest level for almost three years in February, official figures reveal.
According to the Office for National Statistics (ONS), 1.56 million British adults were officially classed as unemployed in February, up 30,000 on the quarter and 120,000 year-on-year.
The UK's unemployment rate rose to 5.1 per cent, its highest level since July 2003.
Unemployment benefit claimant numbers also increased by 12,600 to 937,000 in February, meaning that claimant numbers rose by 106,200 over the previous 12 months, despite the government's pledge to cut benefit claim rates.
This was despite a rise in the number of people in employment in the three months to February to 28.84 million, the highest level since records began in 1971.
The overall employment rate for working-age adults remained unchanged at 74.5 per cent, although this is down 0.4 per cent year-on-year.
Employment minister Margaret Hodge latched onto the positive employment figures and insisted that the overall jobs market remained positive.
"The number of people working is now higher than it has ever been. Combined with low redundancies and nearly 600,000 vacancies in the economy, the UK labour market is in a position that most would envy," Ms Hodge said.
However, she admitted that more needed to be done to lower the UK's soaring claimant count.
"While there have been falls in numbers claiming other benefits, it is clear that we must work harder to tackle the rise in claimant unemployment," Ms Hodge added.
"The vacancies are out there. So in the coming months we need to help more people who are on Jobseekers Allowance to find the right job for them and get back into work."
However, shadow chief secretary to the Treasury, Theresa Villiers, branded the figures "disconcerting", warning that the UK's rising unemployment rate stood in stark contrast to most of its economic rivals who have reported falling joblessness in recent months.
"Unemployment in the UK has risen over the past 12 months despite having fallen in many other major European and global economies," Ms Villiers said.
"[Chancellor] Gordon Brown claims to have locked in economic stability, but if this is the case, why are we seeing these worrying trends emerging?"
The figures will raise expectations of a possible interest rate cut in the coming months, as they dampen Bank of England expectations of a consumer spending pickup in the second half of 2006.
The Bank's monetary policy committee last week voted to keep rates on hold at 4.5 per cent for the eighth consecutive month.