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UK unemployment increases again UK unemployment increases again
(10 minutes later)
The number of people out of work in the UK rose by another 164,000 between June and August, to 1.79 million, according to government figures.The number of people out of work in the UK rose by another 164,000 between June and August, to 1.79 million, according to government figures.
The rise - the biggest since 1991 - took the official unemployment rate to 5.7% from 5.2% in the previous quarter.The rise - the biggest since 1991 - took the official unemployment rate to 5.7% from 5.2% in the previous quarter.
Jobseeker's allowance claimants rose by 31,800 to 939,900 in September said the Office for National Statistics.Jobseeker's allowance claimants rose by 31,800 to 939,900 in September said the Office for National Statistics.
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.
And average annual earnings growth slowed to 3.4% in the three months to August - the weakest in five years and a sign that headline inflation was not being reflected in wages. Unemployment is likely to rise, certainly above two million. The question is how much further than that John Philpott, Chartered Institute of Personnel and DevelopmentAnd average annual earnings growth slowed to 3.4% in the three months to August - the weakest in five years and a sign that headline inflation was not being reflected in wages. Unemployment is likely to rise, certainly above two million. The question is how much further than that John Philpott, Chartered Institute of Personnel and Development
The 5.7% unemployment rate was the highest since the three months to March 2000.
'Worse to come''Worse to come'
The government is to make an extra £100m available to re-train workers who lose their jobs as the economy slows.The government is to make an extra £100m available to re-train workers who lose their jobs as the economy slows.
The BBC's business correspondent Martin Shankleman said some economists were predicting that unemployment would rise to two million by Christmas.The BBC's business correspondent Martin Shankleman said some economists were predicting that unemployment would rise to two million by Christmas.
And at least one forecast suggested it could reach three million by Christmas 2009, he added.And at least one forecast suggested it could reach three million by Christmas 2009, he added.
Jacqui Hay, recently unemployed: 'I have a panic attack once a week'Jacqui Hay, recently unemployed: 'I have a panic attack once a week'
The Chartered Institute of Personnel and Development said its surveys suggested the worst was still to come, with recruitment slowing and redundancies rising.The Chartered Institute of Personnel and Development said its surveys suggested the worst was still to come, with recruitment slowing and redundancies rising.
"It's simply that the crunch effect is intensifying, and will continue to intensify into next year," said the organisation's chief economist John Philpott."It's simply that the crunch effect is intensifying, and will continue to intensify into next year," said the organisation's chief economist John Philpott.
"We'll see hundreds of thousands of jobs being lost, and unemployment is likely to rise, certainly above two million. The question is how much further than that.""We'll see hundreds of thousands of jobs being lost, and unemployment is likely to rise, certainly above two million. The question is how much further than that."
'Funding vital''Funding vital'
In Tuesday's announcement of measures to retrain workers, Work and Pensions Secretary James Purnell said the UK was in "uncertain times". Prime Minister Gordon Brown said the government would do all it could to create work and help people maintain their jobs.
"The clear message I want to send to people is that there is help out there if the worst happens and they find themselves unemployed," he added. "Unemployment and redundancies are something that we wish to avoid wherever possible," he said.
The TUC said the additional funding would be vital. Shadow Work and Pensions Secretary Chris Grayling said the government's handling of the economy over the past ten year was "feeding through into the real economy".
"Unfortunately many people suffer as a result," he added.
The TUC said government plans for additional funding would be vital.
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"There can be no assumption that the people who are losing their jobs will find it easy to get new ones, and they will need all the help they can get with redundancy pay, re-training and personal advice," said general secretary Brendan Barber."There can be no assumption that the people who are losing their jobs will find it easy to get new ones, and they will need all the help they can get with redundancy pay, re-training and personal advice," said general secretary Brendan Barber.
The TUC has also demanded a series of other measures which it says are needed to address the unemployment trend, including increasing the statutory minimum redundancy pay.The TUC has also demanded a series of other measures which it says are needed to address the unemployment trend, including increasing the statutory minimum redundancy pay.
Mr Barber said the government should also drop its work-for-dole plans - designed to encourage people back to work - which he said were based on "blame-the-victim attitudes".Mr Barber said the government should also drop its work-for-dole plans - designed to encourage people back to work - which he said were based on "blame-the-victim attitudes".


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