Unemployment: Joblessness Rises to 2.64m

128,000 people are newly jobless

128,000 people are newly jobless

According to the Office for National Statistics (ONS), the rate of unemployment has jumped from 7.9% to 8.3% in the last quarter.

While the bump does not even equal a full percentage, it amounts to a mammoth 128,000 more jobless individuals than there were over 6 months prior.

Jobseekers Allowance

The number of out of work people claiming Jobseekers Allowance has risen to 1.027 million people, the highest ever figure since recordkeeping began in 1992.

The latest figures also show a new record high for youth unemployment, which rose to 1.027 million. This figure shows that almost half of all unemployed are out of work young people, many of whom continue to be unemployed because they have little work experience that would make them attractive to employers.

For young people who came of working age during the financial crisis of 2008, there are much fewer opportunities to find careers simply because of their age and lack of experience during a time when firms struggle to find money to pay workers. Experts say that many are caught in a “vicious cycle” of joblessness.

Currently the rate of unemployment among 16 to 24 year olds is 22%, up from 20.8% three months earlier.

However, there is good news concerning unemployment, as the rate of those claiming Jobseekers Allowance is showing signs of slowing down.

The 3,000 new claimants are much fewer than the 15,000 that economics expected to file for Jobseekers Allowance.

Public sector job losses

Across all ages, the total number of employed people fell by 63,000.

Many are attributing this huge loss in jobs to cuts in the public sector, which boasted 67,000 job losses.

The private sector has not been able to make up the losses, as it added just 5,000 new jobs over the same period as the public sector employment cuts.

Women have been affected disproportionately by the recent rash of job losses, as 45,000 of the newly unemployed were women compared with just 19,000 newly jobless men.

However, ONS statistics show that the hard times befalling women are not keeping them from seeking jobs. The percentage of women across all ages who are economically inactive fell to 29.1%. This is the lowest proportion on file since record keeping started in 1971.

Despite the bits of heartening news, analysts say that the outlook for jobs in Britain could be getting worse. There are widespread expectations that the UK will enter a recession in the first part of 2012, which will put an even larger burden on British jobseekers.

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