The number of unemployed in Britain is now up to 2.5 million, which is a jump of 49,000 in the 3 months before November.
A further worry is the number of young people who are now unemployed which has reached its highest level since records began in 1992. The number of 16-25 year olds who do not have a job now stands at 951,000.
However, the office of national statistics has said that despite the fact that the number of people without work is rising, the number of people who are claiming job seekers allowance has fallen by 4,100.
The Prime Minister has this to say about the figures “”Any increase in unemployment is a matter for huge concern,” he added “There are some very disappointing figures, particularly on youth unemployment,”.
To make matters worse, this data comes only a day after news that annual inflation spiked to a eighth month high of 3.7% during December and has led to further speculation that the bank of England could be forced to raise insurance rates.
It also looks like unemployment is set to fall even further with the government’s heavy cuts in public spending.
“We suspect that unemployment is headed up in 2011 as a consequence of slower, below-trend growth, rising business caution and public sector jobs being increasingly pared.” said IHS Global Insight economist Howard Archer.
While the government is vastly reducing public spending and increases taxes as it attempts to reduce a massive deficit, it is feared that the plan will prevent undercut economic growth and jobs.