17/02/2010

Joblessness Falls Again

UK unemployment has fallen for a second consecutive month, however the number of people claiming Jobseeker’s Allowance has increased.

The claimant count remains around 450,000 lower than expected last year, and is at 5% compared to 10% in previous recessions.

Total unemployment stood at 2.46 million for the three months to December, down 3,000 on the figure for the previous three months.

The number of people claiming Jobseeker's Allowance climbed by 23,500 to 1.64 million in January. Around 70% of claimants are still leaving Jobseeker’s Allowance within six months, the Government said.

Ministers have warned that further rises in unemployment are expected before the summer.

In previous downturns unemployment increased for over a year after the recession had finished, however the Government believes that increased investment and changes in the labour market will help bring unemployment down faster this time.

Half a million unemployed people have got jobs through the Local Employment Partnerships (LEP) run by Jobcentre Plus, almost 200,000 of these since September 2009.

Work and Pensions Secretary Yvette Cooper said: "But we know things are going to be tough for a while and we expect further increases in unemployment before the summer. That's why it’s so important to increase help for people now, not cut it back."

(PR/GK)

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