15/10/2008

UK Unemployment Figures Rise 'Dramatically'

Unemployment figures in the UK have risen dramatically by another 164,000 between June and August, according to new figures.

The Office for National Statistics has revealed those out of work has risen to 1.79 million - the largest increase since 1991.

Those claiming Jobseeker's Allowance have also gone up in September by 31,800 to 939,900.

The figures highlight further evidence of the economic downturn, following recent statistics which unveiled increased pressure on families as a result of the 'credit crunch'.

Paul Kenny, General Secretary of the GMB union, said: "There are human stories behind these headlines. Left to itself things are likely to get worse and there is more gloomy news on the way.

"Now is not the time for faint hearts. The Government should use public spending to create jobs on projects like Crossrail and other transport infrastructure, on social housing schemes and items like ships and aircraft for the armed forces."

The government has announced plans to make an extra £100 million available to re-train workers who have lost jobs as the economy slows down. Work and Pensions Secretary James Purnell and Skills Secretary John Denham announced the extra funding in a joint statement.

Many analysts have viewed the funding as proof ministers are preparing for an economic recession.

James Purnell, the Work and Pensions Secretary, said: "These are uncertain times and the clear message I want to send to people is that there is help out there if the worst happens and they find themselves unemployed."

Describing the unemployment figures as "extremely bad news", Brendan Barber, the general secretary of the TUC said a number of measures were required to try and halt the rise of job losses.

He said: "There can be no assumption that the people who are losing their jobs will find it easy to get new ones, and they will need all the help they can get with redundancy pay, retraining and personal advice."

(JM)

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