The number of unemployed people rose by 60,000 in the three months to June, bringing the total number of jobless to 1.67 million, government figures have shown.
Figures released today from the Office for National Statistics (ONS) showed that the unemployed now make up 5.4% of the labour market, an increase of 0.2% on the previous quarter.
Furthermore, the data revealed that the number of people claiming unemployment benefits also increased to 864,700 in July 2008, an increase of 20,100 from June.
John Philpott, chief economist at the Chartered Institute of Personnel and Development (CIPD), said the figures do not bode well for business growth.
“This is the weakest set of labour market data since the economic slowdown began,” he said. “The impact of the economic slowdown is also becoming more widespread. Nearly every sector of the economy posted fewer job vacancies in the three months to June.
“This is particularly evident in those parts of the private sector that until recently were major engines of job creation such as shops, hotels and restaurants, finance and business services, and construction.
“Moreover for the first time since the credit crunch emerged there is a clear sign that redundancies are on the rise.”
Philpott also remarked that this “worrying” rise in unemployment levels shows no signs of abating, with the number of people claiming Jobseekers’ Allowance expected to climb towards one million for the first time this decade by the end of the year.
© Crimson Business Ltd. 2008