Record unemployment ‘caused by eurozone crisis’
By Nick Mann | 16 November 2011
The government has blamed the eurozone crisis for the latest rise
in UK unemployment, which is now at its highest for 17 years.
Figures published today by the Office for National Statistics show
that 1.02 million 16–24 year-olds were out of work in the three months to
September, the first time youth unemployment has topped 1 million since records
began. The young jobless rate is now 21.9%.
The overall number of unemployed people increased by 129,000 over
the quarter to reach 2.62 million. This puts the jobless rate for the three
months to September at 8.3% of the economically active population, the highest
since January 1996.
Commenting on the figures, employment minister Chris Grayling
said: ‘These figures show just how much
our economy is being affected by the crisis in the eurozone. Our European
partners must take urgent action to stabilise the position.
‘Our challenge in the Autumn Statement
will put in place additional measures to support growth and create employment
opportunities, especially for young people.’
The Department for Work and Pensions
added that the government was ‘determined’ to tackle youth unemployment. It
said measures launched already would get 350,000 young people back into work in
the next two years.
In particular, it highlighted the impact
of sector-based work academies and work experience, as well as its
welfare-to-work initiative the Work Programme and plans to expand the
apprenticeships programme.
As part of this, Business Secretary Vince Cable today announced a
£1,500 payment to small companies that take on their first apprentice, if that
person is aged under 25. The government estimates that this scheme will
increase the number of young apprentices by around 20,000.
But the Institute for Public Policy and Research said there was no
new funding for this initiative, with the £30m cost coming from within the
previously announced £1.4bn apprenticeships budget.
Tony Dolphin, the IPPR’s chief economist, called on the government
to do more to tackle rising youth unemployment.
‘It should introduce a job guarantee, paid at the minimum
wage or above, to any young person who has been out of work and claiming
Jobseekers’ Allowance for more than a year, matched by an obligation to take up
the offer or find an alternative that does not involve claiming JSA,’ he said.
