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Further rise in jobless expected UK unemployment rises by 131,000
(about 2 hours later)
Official figures out later are expected to confirm that the number of people out of work rose again in December. UK unemployment rose by 131,000 to 1.92 million between September and November, official figures have shown.
Data is expected to show that jobless claims rose by 85,000, following on the back of November's rise of 75,700. That does not include the tens of thousands of jobs cut since November.
The unemployment rate is set to have hit 6.1% in the quarter to November - or more than 2 million people - from 6% in the three months to October. The number of people claiming jobseeker's allowance increased by 77,900 to 1.16 million, according to the Office for National Statistics.
The Ernst & Young Item Club predicted earlier this month unemployment would hit 3.35 million by the end of 2010. Employment minister Tony McNulty said the figures were "very disappointing" and predicted things would "get worse before they get better".
With credit remaining hard to obtain and expensive, many firms are reducing the workforce in a move to cut costs.
The government has been seeking ways to prevent further job cuts and on Monday announced a new package to bail-out the banks and encourage more lending, saying without further help jobs would be lost.
Without the new plan, jobs could have been "needlessly" lost at healthy firms unable to gain access to necessary funding, said Prime Minister Gordon Brown.
Separately figures on Wednesday are to be released regarding the UK's public finances. As jobless claims increase this puts more strain on the UK's finances.

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