Jobless rate rises to 7.9%

17 Apr 13
Unemployment rose to 7.9% in the three months to February, prompting suggestions that the labour market is beginning to reflect economic reality.

By Vivienne Russell | 17 April 2013

Unemployment rose to 7.9% in the three months to February, prompting suggestions that the labour market is beginning to reflect economic reality.

This compares with 7.7% recorded in the three months to November 2012 and follows an extended period of falling unemployment.

The figures, published today by the Office for National Statistics, show that 70,000 more people became unemployed, bringing the total out of work to 2.56 million. Of the newly jobless, 20,000, or almost a third, were aged between 16 and 24. The number of young people without work is now close to 1 million at 979,000. This takes the rate to 21.1%, a rise of 0.6 percentage points on the previous three-month period.

However, compared with the same period a year ago, overall unemployment was down by 71,000 and the unemployment rate down by 0.3 percentage points.

Commenting on the figures, Ian Brinkley, director of the Work Foundation, said: ‘As we predicted, economic reality has caught up with the labour market. The jobs recovery of 2012 appears to have stalled.

‘Comparing the three months to February with the previous three months shows that our economy has stopped creating new jobs, unemployment is increasing and wage growth has stalled.’

He added that the rise in youth unemployment was particularly disappointing given the high priority the coalition had given to this issue.

‘These numbers should be a spur for the government to focus the upcoming Spending Review on supporting activities with the potential to create jobs and drive growth,’ said Brinkley.

Employment minister Mark Hoban acknowledged that were still ‘tough challenges’ ahead. ‘We will continue to give jobseekers all the help and support they need to realise their aspirations,’ he said.

Frances O’Grady, general secretary of the Trades Union Congress, said the figures made for ‘grim reading’.

She added: ‘Today’s results provide further evidence of why the chancellor must change course and prioritise jobs, growth and living standards.

‘Our jobs market is a long way off a strong recovery and is being made worse by economic policies which are failing to deliver sustained employment growth and rising real wages.’


Spacer

CIPFA logo

PF Jobsite logo

Did you enjoy this article?

AddToAny

Top