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Unemployment at highest level since 1995

By Channel 4 News

Updated on 16 September 2009

The number of unemployed people rises 210,000 to 2.47 million between May and July - but those claiming jobseeker's allowance in August rose by only 24,400, to 1.61 million.

A Job Centre (picture: Reuters)

It is the 18th month in a row that the number seeking jobseeker's allowance has risen, bringing the figure to its highest level since May 1997 according to the Office for National Statistics (ONS).

The number of unemployed people between the ages of 16 and 24 reached 947,000, the highest level since ONS records began in 1992.

The jobless rate among this age group is also a record 19.7 per cent, while the overall unemployment rate is now 7.9 per cent, up 0.7 per cent on the previous three months and the highest proportion of the workforce since November 1996.

However, the number of people employed in the public sector rose between by April and June by 13,000 to 6.04m and their average pay had increased by 3.4 per cent, compared with 1.2 per cent in the private sector.

Paul Kenny, general secretary of the GMB union, said: "More workers, particularly young workers, are paying a devastating price for the bankers' recession and there is some way to go before unemployment stops rising.

"Yesterday the Tories threatened 10,000 jobs secured on building the aircraft carriers in Fife, Glasgow and Portsmouth and other parts of the UK.

"We need to be clear with the electorate, the Tory plan to cut public spending will stall an economic recovery and add to the dole queues. It is madness and must be opposed."

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