Unemployment in Britain at 17-yr high

The unemployment rate in the UK has risen to a 17-year high of 8.1 per cent, taking the total number to 2.57 million unemployed people.

Between June and August, the number of unemployed rose by 114,000, according to the Office for National Statistics, the official record keeper for the country.

The most disturbing part of the unemployment rate, however, was the numbers rising among youth. The unemployment among 16-24-year-olds hit a record high of 991,000 in the quarter, a jobless rate of 21.3 per cent. The number of people out of work and claiming government benefits rose to 1.6 million.

Employment Secretary Chris Grayling said the rising unemployment in the country was the impact of the global financial crisis. He said although the UK was not in the euro zone, it was not immune to the problems currently being experienced in the region, particularly in countries like Greece.

Grayling said the youth unemployment numbers nearing one million include nearly 250,000 youths looking for part-time work while studying.

Reacting to the latest unemployment number, the GMB union said that the coalition government’s big gamble that private sector growth would create enough jobs to compensate for their cuts in public sector jobs has not paid off.

GMB General Secretary Paul Kenny said, “In the middle of the worst international recession for 80 years, the government itself is creating unemployment with 250,000 public sector posts already gone and still more to come. These posts could have been available to the 2.57 million workers now facing the despair of mass unemployment. The squandering of human talent through unemployment is a crime that will haunt future generations.”

Katja Hall, chief policy director with industry lobby CBI, said: “Today’s unemployment numbers make grim reading, especially for our young people. The continuing rise in youth unemployment is a grave concern for us all. Businesses are still creating jobs and only continuing private sector growth can help us out of the current tumult. With jobs falling in the public sector, it’s vital the government does everything it can to support businesses to grow and create jobs, and help young people get into work.”

The Bank of England, in its attempt to revive economic growth, decided to pump in a further £75 billion last week. The improved bank lending is expected to support small- and medium-sized businesses.