This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11998364

The article has changed 11 times. There is an RSS feed of changes available.

Version 3 Version 4
UK unemployment total increases to 2.5m UK unemployment total increases to 2.5m
(40 minutes later)
Unemployment in the UK increased by 35,000 in the three months to October to 2.5 million, the Office for National Statistics (ONS) has said.Unemployment in the UK increased by 35,000 in the three months to October to 2.5 million, the Office for National Statistics (ONS) has said.
It is the first time that the jobless measure has risen for six months.It is the first time that the jobless measure has risen for six months.
The increase pushed the unemployment rate up to 7.9%, higher than analysts had expected. The surprise increase was driven by public sector job losses, and pushed the unemployment rate up to 7.9%.
However, the number of people claiming the jobseeker's allowance in November fell fractionally, by 1,200 to 1.46 million, the ONS said. However, the number of people claiming Jobseeker's Allowance in November fell fractionally, by 1,200 to 1.46 million, the ONS said.
Across the UK, among the worst-hit areas were Yorkshire, the North East and Northern Ireland, all of which already suffer unemployment rates over 9%, and saw big drops in total employment. At Prime Minister's Questions in parliament, Labour leader Ed Miliband claimed that in light of the latest jobs data, the government's claim that the UK economy was out of the danger zone "rings hollow".
The Midlands saw the biggest jump in unemployment, up by 0.5 percentage points in the West Midlands and 0.8 in the East, to 8.9% and 8.2% respectively. Unemployment in Wales rose slightly, by 4,000. David Cameron pointied to the fall in unemployment benefit claimants and a rise in job vacancies, and claimed that the coalition was about to launch the "biggest back-to-work programme for 70 years".
London, the East and Scotland saw their unemployment rates fall slightly, while the South West remains the UK's jobs outperformer, seeing its unemployment rate fall 0.3 percentage points to just 5.7%, the lowest in the UK. Public vs private
The rise in the number of jobless was almost entirely driven by the public sector, where employment fell 33,000, according to the ONS's latest monthly labour market report.
However, the private sector failed to take up the additional slack, with employment remaining unchanged.
The government is relying on private sector job creation to offset an estimated 330,000 public sector redundancies over the next four years due to government austerity measures.
But David Birne, insolvency practitioner at accountants HW Fisher, describes this view as being out of touch with what is happening on the ground.
"For the UK's businesses and their employees, 2011 is shaping up to be harsher than any of the past three years," said Mr Birne.
"This time next year we expect unemployment to be considerably higher than it is at present, as many more of Britain's companies go to the wall. We deal with companies of every size and from every sector day in, day out and for a large chunk of them things are looking very bleak indeed."
DisappointmentDisappointment
Analysts had expected total unemployment to fall. Analysts had expected total unemployment to fall, and the pound dropped over half a cent on the news, to $1.569.
The pound dropped over half a cent on the news, to $1.569.
The data could also heighten the policy dilemma for the Bank of England, coming only a day after figures showed consumer price inflation had risen to 3.3%, well above the Bank's 2% target.The data could also heighten the policy dilemma for the Bank of England, coming only a day after figures showed consumer price inflation had risen to 3.3%, well above the Bank's 2% target.
In recent meetings, the Bank's monetary policy committee has been split three ways, with one member voting in favour of gradual interest rate rises to head off inflation, while another has voted to increase the Bank's purchases of government bonds in order to boost the recovery.In recent meetings, the Bank's monetary policy committee has been split three ways, with one member voting in favour of gradual interest rate rises to head off inflation, while another has voted to increase the Bank's purchases of government bonds in order to boost the recovery.
"I think it's an antidote to some of the inflation concerns yesterday," said Brian Hilliard, economist at Societe Generale. "The employment increases seem to be running out of steam. The unemployment figures do not bode well for 2011, according to Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD).
"The question is still whether there is sufficient momentum in the economic recovery to generate steady employment gains. I can see that in manufacturing but not in the service sector." He found it especially disappointing that the positive momentum built up over the summer appears to have run out of steam before the full impact of government austerity has been felt.
Gender divide While noting another slight fall in the number of people claiming Jobseeker's Allowance and a tiny increase in job vacancies, he said "the remainder of the ONS statistical release reads as if it was scripted by the Grinch who stole Christmas".
Part-timers
Pay - excluding bonuses - was up 2.2% on a year earlier, some way below the inflation rate, meaning that the purchasing power of wages continued to fall on average.Pay - excluding bonuses - was up 2.2% on a year earlier, some way below the inflation rate, meaning that the purchasing power of wages continued to fall on average.
There was also a 22,000 increase in the number of "inactive" people - those out of work but not seeking work, meaning they are not counted as unemployed - mainly because of an increase in early retirement. Another source of concern for many analysts is the growing inability of workers to find full-time jobs:
  • the number of people employed full-time fell 58,000, offset by a 26,000 increase in part-time workers
  • a record 1.16 million workers said they were working part-time because they could not find enough work
  • the number of temporary workers who could not find permanent jobs also hit a new high of 592,000
  • there was also a 22,000 increase in the number of people of employment age not seeking work - meaning they are not counted as unemployed - mainly due to an increase in early retirement.
"Until full-time jobs start to increase again the labour market will not be able to absorb large-scale job losses in the public sector," said Ian Brinkley, associate director of the Work Foundation. "Unemployment in 2011 must then inevitably rise."
Gender divide
Across the UK, among the worst-hit areas were Yorkshire, the North East and Northern Ireland, all of which already suffer unemployment rates over 9%, and saw big drops in total employment.
The Midlands saw the biggest jump in unemployment, up by 0.5 percentage points in the West Midlands and 0.8 in the East, to 8.9% and 8.2% respectively. Unemployment in Wales rose slightly, by 4,000.
London, the East and Scotland saw their unemployment rates fall slightly, while the South West remains the UK's jobs outperformer, seeing its unemployment rate fall 0.3 percentage points to just 5.7%, the lowest in the UK.
The data suggests that women are doing worse than men. The number of female benefit claimants rose by 4,800, compared with a 6,000 drop in male claimants.The data suggests that women are doing worse than men. The number of female benefit claimants rose by 4,800, compared with a 6,000 drop in male claimants.
The percentage of women aged 16 to 64 in work dropped 0.2% to 65.5%, while for men the rate was unchanged at 75.8%.The percentage of women aged 16 to 64 in work dropped 0.2% to 65.5%, while for men the rate was unchanged at 75.8%.
Public vs private
The rise in the number of jobless was entirely driven by the public sector, where employment fell 33,000.
However, the private sector failed to take up the additional slack, with employment there remaining unchanged.
The government is relying on private sector job creation to offset an estimated 330,000 public sector redundancies over the next four years due to government austerity.
But David Birne, insolvency practitioner at accountants HW Fisher describes this view as being out of touch with what is happening on the ground.
"For the UK's businesses and their employees, 2011 is shaping up to be harsher than any of the past three years," said Mr Birne.
"This time next year we expect unemployment to be considerably higher than it is at present, as many more of Britain's companies go to the wall. We deal with companies of every size and from every sector day in, day out and for a large chunk of them things are looking very bleak indeed."
Are you unemployed? Or are you having difficulty finding work? You can send us your comments using the form below:Are you unemployed? Or are you having difficulty finding work? You can send us your comments using the form below: