U.K.:Unemployment heads over 1 million

[Antaletriangle]

http://www.guardian.co.uk/business/2...data-recession
Unemployment in Britain has surged at its fastest rate since 1991, taking the total number of people claiming jobless benefits to over 1 million for the first time in seven years, adding to the increasingly bleak outlook for the economy.


The number of people out of work and claiming Jobseeker's Allowance jumped by 75,700 in November from the previous month - much more than expected - to hit 1.07 million, figures from the Office for National Statistics showed this morning. It was the biggest monthly rise since March 1991 and bigger than the 45,000 increase expected by most economists in the City.


Sterling hit a fresh record low against the euro of €1.0985 on the news, which coincided with the publication of the minutes of the Bank of England's last meeting. They showed that its rate-setting committee voted unanimously for this month's one percentage point cut in interest rates and discussed whether an even bigger reduction might be needed.


Vicky Redwood at Capital Economics described the surprisingly large jump in unemployment as "shocking". "It far exceeded expectations and was above that symbolic 1 million mark," she said.


On the broader International Labour Organisation measure, unemployment increased by 137,000 in the three months to October to reach 1.86 million - the highest level since 1999. Many experts believe it will top the 2 million mark over Christmas. The unemployment rate climbed to 6%, up 0.4 percentage points from the previous three months.


"The figures look absolutely horrible," said Amit Kara at UBS. "We are looking for a forecast of 3 million in 2010 or higher - rising every month next year and into 2010. We are in for a period of prolonged pain."


George Buckley at Deutsche Bank echoed his comments. "I think what's interesting is the scale of job losses this early in the cycle. Unemployment is normally a lagging indicator so to see so many job losses this early in the cycle is extremely worrying."


All measures pointed to a rapidly weakening labour market, with employment levels down 115,000 in the quarter to October compared with the three months to July. The number of vacancies in the economy fell to its lowest level since records began in 2001. Wage growth was unchanged at 3.3%.


Unemployment is likely to rise above 3 million in the current recession, the Bank of England's labour market expert, David Blanchflower, warns today. In previous UK recessions, unemployment soared to more than 3 million.


"I expect unemployment to continue to rise to through 2009 and into 2010, probably to over 3 million," Blanchflower, a member of the Bank of England's monetary policy committee, says in an article for the Royal Economic Society's January newsletter, a copy of which was obtained by the Guardian. "Where is the light at the end of the tunnel? I can't see any," he says.


Blanchflower's view is echoed by the TUC, which warns today that half a million people are likely to spend their second Christmas in a row on the dole because of a rise in long-term unemployment.


Alan Tomlinson, a partner at insolvency practitioners Tomlinsons, said: "Today's figures show just how serious things have become. They are a manifestation of the growing number of corporate failures and cost-cutting strategies resulting from loss of business, sharp drops in turnover, increased bad debts and weaker pricing. It is a bitter market out there right now. With companies across the UK struggling or succumbing in the current climate, the number of personal insolvencies looks set to skyrocket in 2009."

[Sol Invictus]

Ouch.

Painful to be losing your job, doesn't matter if the person is single, has a family or what ever. No job hurts the soul.

And the belly.

[Jacqui D]

This is just the beginning!
The future looks very bleek indeed, with so many out of work next year this will be the crunch time i fear.
As usual the government will alter the figures such as they do and cloud over the true amount of people that will be jobless.
With car companies now going into a 3 day week and asking their employees to take a 9 month sabitical on a very low percentage of their wages something like 20%, how will people survive!

The latest scam by the government to make single mothers return to work easing pressure on benefit claimants will be of no help.
If there is no work about how can they return! It makes no sense.

With large stores like Woolworths going down, many more may follow.
There has been words spoken about Debenhams another large store with a long record of sales for many years.

Now the government have decided to put a block on immigrants coming into the country, at last! i'm not racist but this little isle has been slowing drowning by immigrant workers for years now with no real figure just how many live here.
There has been no mention about the benefit payments paid to those who claim for their children abroad.
Yet they are forcing our own to work while their children are being cared for by childminders or day care nurserys which they have to find the money for in the first place!

No even the polish and eastern block immigrants are going home in their droves.
The easy pickings of british handouts are now becoming so hard to get they finally realise they are better off in their own countries.

With no skills being taught to our youngsters leaving school, britain will be at an all time low.

The government are going to up the age of leaving school to 18 instead of the age of 16 as it stands now.
The older work force 60 plus will be working harder than ever instead of enjoying their retirement, they will find themselves working on for more years to come.

And any pension they scrimped and scraped for, for all those years will be taken because of a loop hole that the government made of over payments for years past, some may lose as much as £200 a week.

Yes things look very bleek indeed, we will be living on a wing of a prayer i feel.

[Avid]

On a little pension, and worried about it's future - the ghost of Christmas future in my pocket - I'm off to do something good to offset the bad!! (As usual)