UK unemployment at 11-year high

Figures from the Office for National Statistics (ONS) have revealed that UK unemployment is at an 11-year high.

According to the ONS, in the three months to September the number of people out of work in the UK soared by 140,000 to 1.82 million, the highest level since 1997.

Meanwhile, claims for Jobseeker’s Allowance rose by 36,500 to 980,900 in October, the highest level since March 2001, and the highest monthly increase since 1992.

The number of manufacturing jobs fell to 2.86 million, the lowest figure for 30 years.

There have been many reports recently forecasting unemployment could reach two million by the end of the year.

According to Amit Kara, an economist at UBS AG in London, hiring won’t start again until 2010 since we’re in for four or five quarters of negative growth.

Commenting on the figures, David Kern, chief economic adviser at the British Chambers of Commerce, said the Government must announce a credible fiscal package in its forthcoming pre-budget report that will help families cope during the downturn.

Mr Kern believes the figures provide scope for a further 0.5% cut in interest rates before the end of the year.

Yesterday, it emerged that Virgin Media was slashing 2,200 jobs from its 14,600 workforce.

Housebuilder Taylor Wimpey, said it has shed 1,000 employees as a result of the slowdown in the housing market and the fall in demand for new homes.

In addition, the world’s second largest drugs maker, GlaxoSmithKline, said it is to shut its manufacturing site in Dartford with the loss of over 500 jobs.

Meanwhile, the British handheld computer maker, Psion, has announced 200 job losses.

Finally, Vodafone, the world’s largest mobile phone company, has announced a cost-cutting exercise, which has led to job fears.

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