Sharp rise in unemployment noted in official figures

19/03/2009

Unemployment has risen to its highest level for over a decade, the government has confirmed.

The jobless total has increased to 2.03 million, an 165,000 increase over the past three months.

This has been largely caused by the credit crunch and the subsequent recession, which has squeezed revenue at many UK companies and led them to cut costs by reducing staff numbers.

Several large businesses, including high street retail chains Woolworths and Zavvi, have also gone into administration, worsening the problem.

Commenting on the new figures yesterday, the British Chambers of Commerce (BCC) said that the government should take action on keeping as many people in work as possible.

The business group also predicted that unemployment would top out at 3.2 million in 2010, as the recession grinds on.

David Kern, chief economist at the BCC, added: "Even with some staff accepting pay freezes and working fewer hours, it is clear that employers are facing significant financial pressures.

"There is a vital need for steps specifically aimed at preventing a damaging loss in our industrial skills base. Temporary measures such as wage subsidies need to be seriously considered."

Tags; Young Family Finances, Job loss, Recent Graduate Debt,

• Share
• 
• 
• Store
• 
• Follow
•