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UK unemployment climbs to 2.44m UK unemployment climbs to 2.44m
(30 minutes later)
The number of people out of work in the UK has risen to its highest level since 1995, official figures have shown.The number of people out of work in the UK has risen to its highest level since 1995, official figures have shown.
Unemployment increased by 220,000 to 2.44 million in the three months to June, taking the jobless rate to 7.8%.Unemployment increased by 220,000 to 2.44 million in the three months to June, taking the jobless rate to 7.8%.
Meanwhile the claims for unemployment benefit in July grew by 24,900 from June to 1.58 million. Claims for unemployment benefit grew to its worst level in 12 years, increasing by 24,900 from June to 1.58 million.
Average earnings, excluding bonuses, grew at its slowest rate since records began in 2001, the Office for National Statistics said. Average earnings, excluding bonuses, grew at their slowest rate since records began in 2001, the Office for National Statistics said.
The figures come ahead of the Bank of England's quarterly inflation report which will offer more clues on the health of the UK economy.The figures come ahead of the Bank of England's quarterly inflation report which will offer more clues on the health of the UK economy.
"There doesn't seem to be much sign that the rate of increase [in unemployment] is slowing down," said Stephen Lewis, chief economist at Monument Securities."There doesn't seem to be much sign that the rate of increase [in unemployment] is slowing down," said Stephen Lewis, chief economist at Monument Securities.
'Marked weakening'
Earlier this week, the government said it had launched an investigation into the gap between the number of people out of work and those who were claiming unemployment benefit.
While the latest data shows that the jobless rate, under International Labour Organisation (ILO) rules, rose to 7.8% in the three months to June - the highest rate since the final quarter of 1996, the rate of people claiming unemployment benefit in July was just 4.9%.
One possible explanation for this discrepancy could be that some people who have recently lost their jobs are relying on their partner's income, their own savings or redundancy payments rather than drawing on benefits.
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"Recently the broader ILO measure of joblessness has indicated a more marked weakening in the labour market, and that trend has continued," said Colin Ellis, European economist at Daiwa Securities.
Meanwhile, an investigation by Radio 4's Face the Facts has found that some frontline staff at Jobcentre Plus, the government agency tasked with getting people back to work, are cutting interview times to cope with the increase in claimants.
However, Employment Minister Angela Eagle dismissed the idea that government cuts to the agency before the recession were proving detrimental to those out of work, saying staff had done "a magnificent job in difficult circumstances".
She added that 9,000 new staff had been recruited and that 80% of people registering after they had lost their jobs were getting an interview with a personal adviser within three days. Benefits payments were also being processed "well within targets", she added.
'Lost to work''Lost to work'
According to BBC calculations based on ONS data, unemployment among 18-24 year olds has risen to 12.4%. According to BBC calculations based on ONS data, the unemployment rate among 18-24 year olds has risen to 12.4%.
There is rising concern about youth unemployment, which Business Secretary Lord Mandelson said the government needs the help of businesses to tackle. There is rising concern about youth unemployment, which Business Secretary Lord Mandelson said the government needed the help of businesses to tackle.
Work experience, mentoring and internships are needed to avoid a generation "lost to work", Lord Mandelson told the BBC.Work experience, mentoring and internships are needed to avoid a generation "lost to work", Lord Mandelson told the BBC.
"This is something the whole country has got to rally to. We need public and private employers, as well as those in the [charity] sector, to help us mount this national campaign to back young Britain.""This is something the whole country has got to rally to. We need public and private employers, as well as those in the [charity] sector, to help us mount this national campaign to back young Britain."
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A group called the Youth Fight for Jobs Campaign says there is a lack of training and affordable housing for younger people.A group called the Youth Fight for Jobs Campaign says there is a lack of training and affordable housing for younger people.
Campaigner Manuel Dominguez said: "It's about highlighting that there's a problem, and also saying to the government, and local MPs, and councillors, what are you going to do about it?Campaigner Manuel Dominguez said: "It's about highlighting that there's a problem, and also saying to the government, and local MPs, and councillors, what are you going to do about it?
"Young people don't get proper training, a lot of working class young people get put off from going to university and being saddled with debt.""Young people don't get proper training, a lot of working class young people get put off from going to university and being saddled with debt."
A new crop of school leavers and university graduates will join the jobs market this summer.A new crop of school leavers and university graduates will join the jobs market this summer.


Have you recently lost your job? Are you worried about your job security? Or have you managed to find work again after being made unemployed?Have you recently lost your job? Are you worried about your job security? Or have you managed to find work again after being made unemployed?
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