Jobs outlook 'as bleak as 1980s'

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The outlook for jobs in the UK is bleaker now than it was in the 1990s recession and more like the "deep" recession of the 1980s, the TUC says.

The unemployment rate increased by 30% in the first 12 months of the current recession, compared with 22% in the 1990s and 29% in the 1980s, it says.

Unemployment rose to a 12-year high of 2.261 million in April.

Earlier this month, a respected research institute said it thought the recession was over or "close to over".

The National Institute of Economic and Social Research (NIESR) estimated that the UK economy resumed growth in April and May.

'False dawn'

But the TUC said ministers "should beware talk of green shoots".

"The picture for jobs and growth is already bleaker than the last recession, and is looking much more like the deep recession of the 1980s every day," said TUC general secretary Brendan Barber.

"Contrary to some commentators, there are no signs that the outlook for unemployment is starting to improve.

"Even if this is not a false dawn, action will be needed for the foreseeable future to help the unemployed, create jobs and rebalance the economy away from the finance sector."

However, the CBI has predicted that by the end of the recession, the economy will have shrunk by a total of 4.8% - less severe than the 5.9% contraction seen in the early 1980s.