Unemployment hits 12-year high

Unemployment in the UK reaches 12-year high

The number of unemployed people in the UK has reached a 12-year high.

The number of jobless in the UK has risen to a 12-year high of 2.261 million in the three months to April, according to the Office of National Statistics (ONS).

The UK job market is displaying the full effects of the recession with the unemployment rate rising to 7.2% in April – the highest it has been since July 1997.

The figure is up 0.7 over the previous quarter and up 1.9 over the year.

The total number of people in employment for the three months to April fell by 271,000 to 29.11 million. This drop in the number of people in employment is the largest quarterly fall since comparable records began in 1971.

The number of jobs also fell by 108,000 between December 2008 and March 2009 to only 31.19 million. The manufacturing sector suffered the most with the number of jobs dropping by 78,000 to 2.94 million in the quarter.

The number of people claiming Job Seeker’s Allowance has also risen over the quarter and is the highest it has been in 12 years. The number of claimants in May 2009 was 1.54 million, up 39,300 from the previous month and up 726,100 over the year.

Job vacancies also suffered a drop over the quarter, falling by 38,000 to 444,000 in May.

Most sectors have experienced fewer vacancies during the three months to April, with the finance and business services sectors suffering the most.

The redundancies level for the three months to April 2009 was 302,000, up 36,000 over the quarter and up 191,000 over the year, and is the highest figure since records began.

Surprisingly, average earnings increased during the quarter, up 0.8% including bonuses. Excluding bonuses, average earnings increased by 2.7%. However, this is the lowest annual growth rate for earnings excluding bonuses since records began.

Derek Simpson, of Unite, said: “Unemployment is still unacceptably high. The increase is less than expected but unemployment has still risen to a 12 year high, so this is no time for complacency. Working families’ jobs and homes are under threat.”