Hiring budgets of companies have been slashed as a result of worsening economic conditions, new research has suggested.
According to the Office of National Statistics (ONS), the number of vacancies has fallen sharply, while the number of people being made redundant continues to rise.
The number of people out of work in the UK now tops 1.79 million, rising by 164,000 – the biggest rise for 17 years.
The ONS figures also showed the number of people claiming Jobseeker’s Allowance increased by 31,800 to 939,900 in September.
The government is hoping to stem the rising tide of unemployment through a £100m scheme to retrain and develop the skills of people made redundant or those already looking for work.
General secretary of the Trades Union Congress (TUC), Brendan Barber, expressed dismay at the latest figures.
“After times when we could take reasonably full employment for granted, we are now in for grim times. This is the next big challenge for government,” he said.
John Philpott, chief economist at the Chartered Institute of Personnel and Development (CIPD), echoed this sentiment.
“The worsening jobs crunch presents the government with a stiff test to its hard earned record on jobs. A decade of building credibility for restoring full employment could be blown away in a matter of months.”
© Crimson Business Ltd. 2008