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Unemployment highest for 11 years

By James Blake

Updated on 12 November 2008

Unemployment between July and September 2008 increased to 1.82 million, according to figures released this morning.

James Blake

Background

Unemployment reached an 11-year high today when another huge increase in the numbers looking for work edged the total closer to the two million mark.

Official figures for the three months to September showed that 1.82m people were out of work, an increase of 140,000 from the previous quarter.

It was the highest figure since the end of 1997 and confirmed the fears of unions and analysts that the politically sensitive two million mark would soon be breached.

The number of people claiming jobseekers allowance rose by 36,500 last month to 980,900, the highest figure since the spring of 2001 and the worst monthly increase since 1992.


The unemployment rate is now 5.8 per cent, the highest since early 2000, while the number of people looking for work has jumped by 182,000 over the past year.

The so-called claimant count has now increased for nine months in a row and is 154,800 higher than a year ago.

The number of people in work fell by 99,000 to 29.4m and vacancies were down by 40,000 to 589,000, according to the Office for National Statistics.

Today's grim figures do not take into account recent job loss announcements, including news of more than 5,000 cuts yesterday by firms including Virgin Media, Yell, Taylor Wimpey and GlaxoSmithKline.

The unemployment rate is now 5.8 per cent, the highest since early 2000, while the number of people looking for work has jumped by 182,000 over the past year.

The number of unemployed men was 1.07m, up 85,000 over the latest quarter, while 55,000 more women joined the ranks of the unemployed, up to 750,000.

Unemployment among 18 to 24-year-olds increased by 53,000 to 579,000, the highest figure since 1995.


In the three months to September the number of manufacturing jobs fell by 55,000 to 2.86m, the lowest figure since records began in 1978.

Long-term unemployment has also increased, with the numbers out of work for longer than a year up by 20,000 to 435,000.

The number of people classed as economically inactive, including those on long-term sick leave or who have given up looking for a job, increased by 15,000 over the three months to 7.89m, more than 20 per cent of the working age population.

In the three months to September 156,000 people became redundant, up by 29,000 from the previous quarter.

The number of manufacturing jobs fell by 55,000 to 2.86m, the lowest figure since records began in 1978.

Average earnings increased by 3.3 per cent in the year to September, down by 0.1 per cent from the previous month and the lowest since the summer of 2003.

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