Unemployment up once again

Both indicators of unemployment show joblessness is on the rise

Wednesday, 12, Apr 2006 12:00

Unemployment has risen by 30,000 in the past four months, while the number of people claiming the dole has risen to its highest point in two and a half years, new figures show.

The number of people registered as unemployed now rests at 5.1 per cent, or 1.56 million, which is 120,000 more than the same time last year.

Last month, there were also 937,600 people claiming Jobseeker's Allowance, up 12,600 on the month and more than 100,000 on the previous year. Total economic inactivity has also increased by 108,000 over the last 12 months.

However, employment is up 147,000 over the last 12 months to 28.84 million – the highest figures since records began – while redundancies are at historically low levels and vacancies remain high.

Ministers have also cited separate figures from the Department for Work and Pensions (DWP) showing the number of people claiming lone parent benefits in January was 29,000 less than last year, while those on incapacity benefit fell by 58,000.

"The number of people working is now higher than it has ever been. Combined with low redundancies and nearly 600,000 vacancies in the economy, the UK labour market is in a position that most would envy," said employment minister Margaret Hodge.

"But there is scope for doing more. While there have been falls in numbers claiming other benefits, it is clear that we must work harder to tackle the rise in claimant unemployment.

"The vacancies are out there. So in the coming months we need to help more people who are on Jobseekers Allowance to find the right job for them and get back into work."

TUC general secretary Brendan Barber welcomed the rise in employment, but raised concerns that long-term unemployment was on the increase, and in particular that more manufacturing jobs have been lost in the last few months.

But shadow chief secretary to the Treasury Theresa Villiers said the figures were "disconcerting", adding: "Gordon Brown claims to have locked in economic stability, but if this is the case, why are we seeing these worrying trends emerging?"