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UK jobless total at 1.97 million UK jobless total at 1.97 million
(40 minutes later)
UK unemployment rose to 1.97 million between October and December, the highest level since 1997, figures show.UK unemployment rose to 1.97 million between October and December, the highest level since 1997, figures show.
The jobless number climbed 146,000 for the three-month period, data from the Office for National Statistics showed.The jobless number climbed 146,000 for the three-month period, data from the Office for National Statistics showed.
For December, the number of those getting jobseeker's allowance added 73,800 to reach 1.23 million.For December, the number of those getting jobseeker's allowance added 73,800 to reach 1.23 million.
The internationally recognised unemployment rate reached 6.3%, the highest since 1998, in a further sign of the weakening economy. The unemployment rate hit 6.3%, the highest since 1998, and comes as The Bank of England recently warned of a "deep recession" for 2009.
See how unemployment has risenSee how unemployment has risen
Many analysts had forecast that unemployment could reach two million for the three-month period - which would have been the highest since 1997.Many analysts had forecast that unemployment could reach two million for the three-month period - which would have been the highest since 1997.
But there are fears the situation will worsen further in the months ahead as the economy cools.But there are fears the situation will worsen further in the months ahead as the economy cools.
Peter Mooney, head of consultancy with Employment Law Advisory Services, said: "From early in December, the number of firms seeking our help in making redundancies simply exploded."Peter Mooney, head of consultancy with Employment Law Advisory Services, said: "From early in December, the number of firms seeking our help in making redundancies simply exploded."
He added: "Things will certainly get worse before they get better. We would expect to see another significant increase in the number of people out of work in the figures published next month, as many more firms were forced to cut staff early in the New Year."He added: "Things will certainly get worse before they get better. We would expect to see another significant increase in the number of people out of work in the figures published next month, as many more firms were forced to cut staff early in the New Year."
Young people between the age of 18 and 24 have been particularly hard hit, with the unemployment rate for the three-month period standing at 11.8%.
ApprenticeshipsApprenticeships
Following the release of the data, David Kern, chief economist at the British Chambers of Commerce, commented: "Unemployment continues to rise in the face of a worsening recession.
"We know businesses do not want to lose key staff, but they are struggling with cash-flow."
Mr Kern added that cutting business rates, freezing the national minimum wage and scrapping plans to increase National Insurance would help firms retain employees.
Prime Minister Gordon Brown is meeting business leaders later to discuss how to help.Prime Minister Gordon Brown is meeting business leaders later to discuss how to help.
We know businesses do not want to lose key staff, but they are struggling with cash-flow David Kern, chief economist, British Chambers of Commerce Special report: Britain's joblessWe know businesses do not want to lose key staff, but they are struggling with cash-flow David Kern, chief economist, British Chambers of Commerce Special report: Britain's jobless
Executives from Sainsbury's, the Royal Mail, Whitbread, Centrica, National Express and Travelodge are expected to attend Downing Street for the first meeting of the National Employment Partnership.Executives from Sainsbury's, the Royal Mail, Whitbread, Centrica, National Express and Travelodge are expected to attend Downing Street for the first meeting of the National Employment Partnership.
The companies, as well as NHS and local authority leaders, will agree to advertise all non-specialist vacancies through the Jobcentre Plus network and to start offering more apprenticeships.The companies, as well as NHS and local authority leaders, will agree to advertise all non-specialist vacancies through the Jobcentre Plus network and to start offering more apprenticeships.
Following the release of the data, David Kern, chief economist at the British Chambers of Commerce, commented: "Unemployment continues to rise in the face of a worsening recession.
"We know businesses do not want to lose key staff, but they are struggling with cash-flow."
Mr Kern added that cutting business rates, freezing the national minimum wage and scrapping plans to increase National Insurance would help firms retain employees.
FROM THE TODAY PROGRAMME More from Today programmeFROM THE TODAY PROGRAMME More from Today programme
A local employment partnership scheme has been launched to get people back into work.A local employment partnership scheme has been launched to get people back into work.
Travelodge chief executive Grant Hearn said the scheme helped to ease the process of recruitment. Councillor Margaret Eaton, chairman of the Local Government Association, said: "The LGA has committed to working with local authorities to increase the number of council apprenticeships by 7,500 to ensure that people are given practical skills that will stand them in good stead for years to come."
"This has enabled us to work quickly and efficiently across the UK with local job centres to find recruits," he said.
Richard Exell, from the Trades Union Congress (TUC), told the BBC he hoped the plan would prompt a joint effort to address unemployment.
"We need measures to help people who've lost their jobs, but also... measures to help people who are at risk of becoming unemployed," he said.
"We'd like to see for instance some extra help to support firms that introduce short-time working instead of making people redundant."
Councellor Margaret Eaton, chairman of the Local Government Association, said: "The LGA has committed to working with local authorities to increase the number of council apprenticeships by 7,500 to ensure that people are given practical skills that will stand them in good stead for years to come."
Redundancies mountingRedundancies mounting
BBC business correspondent Nils Blythe says figures on the wider measure of unemployment - which also includes people not claiming benefits - only cover the three months up to December, so do not include the most recent job losses.BBC business correspondent Nils Blythe says figures on the wider measure of unemployment - which also includes people not claiming benefits - only cover the three months up to December, so do not include the most recent job losses.
However, our correspondent says the total is expected to rise above two million once the latest redundancy programmes are captured in official statistics.However, our correspondent says the total is expected to rise above two million once the latest redundancy programmes are captured in official statistics.
The sector with the largest fall in jobs was finance and business services, which shed 72,000 positions.
As employers seek to cut costs, the number of jobs available falls.
Vacancies for the three-month period fell to 504,000, down 76,000 from the period to October. In the same period a year earlier, vacancies had been 684,000.
A TUC study said that while unemployment in the UK was lower than the European average, it was now increasing twice as fast as the average across Europe.A TUC study said that while unemployment in the UK was lower than the European average, it was now increasing twice as fast as the average across Europe.
The UK's unemployment rate remains below the European average, which is 7.7%.The UK's unemployment rate remains below the European average, which is 7.7%.
TUC general secretary Brendan Barber said: "The UK began the global recession with a relatively strong jobs position, but our advantage is beginning to disappear as redundancies mount."TUC general secretary Brendan Barber said: "The UK began the global recession with a relatively strong jobs position, but our advantage is beginning to disappear as redundancies mount."
Are you affected by this news? Have you recently lost your job, or started claiming jobseeker's allowance? Have you managed to find a new job in the past few weeks? Have you experienced unemployment in previous recessions?Are you affected by this news? Have you recently lost your job, or started claiming jobseeker's allowance? Have you managed to find a new job in the past few weeks? Have you experienced unemployment in previous recessions?
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