UK unemployment increases to 2.64m

UK unemployment increases to 2.64m

UK unemployment rose by 128,000 in the three months to October to 2.64 million, the highest level since 1994.

The Office for National Statistics (ONS) said the jobless rate was 8.3%, up from 7.9% in the previous quarter.

Youth unemployment rose to 1.027 million, the highest since records began in 1992, beating the previous record set only last month.

The number of people out of work and claiming Jobseeker's Allowance rose by 3,000 to 1.6 million in November.

However, the rate of increase in the claimant count showed signs of slowing down.

The 3,000 rise was much less than the approximate 15,000 figure expected on average by economists.

Moreover, the ONS also revised down the October increase in the claimant count from the 5,300 reported last month to just 2,500.

'Wasted lives'

The young continued to bear the brunt of the lack of jobs in the UK - a problem shared by many other countries.

The unemployment rate among 16 to 24-year-olds rose to 22% in the three months to October, up from 20.8% three months earlier.

Although this was the highest rate since formal records began in 1992, the ONS said it estimated that the rate had been higher in the mid-80s.

"Too many young lives are being wasted in the dole queue," said Martina Milburn, chief executive of the Prince's Trust youth charity.

"It is frightening to think that more than two-fifths of unemployed young people have been jobless for more than six months.

"Long-term unemployed young people are the most vulnerable, with many trapped in a vicious cycle of joblessness, anxiety and depression."

Gloomy outlook

The total number of people of all ages in employment fell by 63,000 compared with three months earlier, to 29.11 million.

That was largely driven by 67,000 job losses in the public sector. The private sector added just 5,000 jobs over the same period.

"In the last quarter for every 13 jobs lost in the public sector, just one was created in the private sector," noted the shadow work and pension secretary, Liam Byrne.

The latest rise in joblessness fell more heavily on men, with a 83,000 increase in male unemployment, compared with 45,000 among women.

But rising unemployment has not discouraged women from seeking work - the percentage of 16 to 64-year-old women who are economically inactive fell to 29.1%, the lowest proportion since records began in 1971.

Long-term unemployment continued to rise in line with broader joblessness.

Those out of work 12 months or more rose to 868,000 from 849,000 three months earlier, and account for one in three of all unemployed.

The number of job vacancies continued to decline, down 8,000 to 455,000.

"This is another grim month for jobs, with private sector companies still reluctant to hire," said Graeme Leach, chief economist at the Institute of Directors.

"The ongoing failure to resolve the euro crisis is likely to mean that unemployment rises still further over the winter. Many businesses are still watching and waiting."

There are widespread expectations that the UK may be entering a recession, particularly if the eurozone debt crisis worsens in the coming months.

 UK unemployment increases to 2.64m