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UK unemployment total rises again UK unemployment total rises again
(20 minutes later)
The number of people out of work in the UK rose by another 81,000 between May and July, to 1.72 million, according to government figures.The number of people out of work in the UK rose by another 81,000 between May and July, to 1.72 million, according to government figures.
That took the official unemployment rate up from 5.3% to 5.5%.That took the official unemployment rate up from 5.3% to 5.5%.
The number of people claiming jobseeker's allowance also rose, by 32,500 to 904,900 in August, the Office for National Statistics (ONS) said.The number of people claiming jobseeker's allowance also rose, by 32,500 to 904,900 in August, the Office for National Statistics (ONS) said.
In a further sign of the economic slowdown, the number of people in work and the number of vacancies both fell.In a further sign of the economic slowdown, the number of people in work and the number of vacancies both fell.
The rise in the headline rate of unemployment took it to its highest level since early 1999. "Today's figures show that unemployment is starting to accelerate and it now looks very likely that total unemployment will reach two million during 2009," said the TUC's general secretary Brendan Barber.
"It is clear that deflation is a much more pressing threat than inflation, and interest rates should be cut," he added.
Earlier on Wednesday, the TUC warned that the number of people out of work for a year or more could almost double by the end of 2009.
Fewer jobs
The rise in the headline rate of unemployment to 5.5% took it to its highest level since early 1999.
With unemployment rising, people are looking to the government for a response Brendan Barber, TUC general secretary Long-term jobless 'could double'
The increase in the claimant count was the seventh in a row and was the biggest monthly rise since December 1992 - during the UK's last economic recession.The increase in the claimant count was the seventh in a row and was the biggest monthly rise since December 1992 - during the UK's last economic recession.
The past few months have seen a steady flow of big redundancy announcements at employers such as Ford, XL holidays, most major house builders, and financial services companies affected by the credit crunch, such as mortgage lenders and credit card issuers. The past few months have seen a steady flow of big redundancy announcements at employers such as major house builders and financial services companies affected by the credit crunch.
The ONS said that in the three months to July, the number of people in work fell by 16,000 from the previous quarter, to 29.54 million, though this was still 333,000 higher than a year ago. More recently there have been job losses at Ford, travel firm XL and the investment bank Lehman Brothers, while the nationalised mortgage bank Northern Rock is in the process of shedding 1,300 jobs.
The ONS revealed that the rising unemployment trend has accelerated sharply in the past few months.
In the three months to July 138,000 people were made redundant, up from 28,000 in the three months to April.
The ONS also revealed that in the three months to July, the number of people in work fell by 16,000 from the previous quarter, to 29.54 million, though this was still 333,000 higher than a year ago.
Likewise, the employment rate fell by 0.2 percentage points from the previous quarter to 74.7%, but this was still 0.2 percentage points higher than during the same period last year.Likewise, the employment rate fell by 0.2 percentage points from the previous quarter to 74.7%, but this was still 0.2 percentage points higher than during the same period last year.