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Unemployment likely to rise again UK unemployment increases again
(10 minutes later)
A further rise in the number of people out of work in the UK is likely to be shown by official figures 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 TUC has predicted that the figures will show a jump of at least 30,000 people unemployed to 1.75 million. The rise - the biggest since 1991 - took the official unemployment rate up from 5.5% to 5.7%.
The government has anticipated a rise by making an extra £100m available to re-train workers expected to lose their jobs as the economy slows down. Jobseeker's allowance claimants rose by 31,800 to 939,900 in September said the Office for National Statistics.
The extra money would be carefully targeted at sectors "experiencing significant job losses", it said. The government is to make an extra £100m available to re-train workers who lose their jobs as the economy slows.
Crunch 'intensifying'
The number of people out of work rose by 81,000 between May and July to 1.72 million.
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
That rise took the official unemployment rate up from 5.3% to 5.5%.
The number claiming Jobseekers Allowance rose by 32,500 in August to 904,900.
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 said.
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.
"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."
Job hunting
In Tuesday's announcement of measures to retrain workers, Work and Pensions Secretary James Purnell said the UK was in "uncertain times".
"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.
The TUC said the 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.
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".

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