UK unemployment hits 2.51 million

The number of unemployed in the UK has risen by 80,000 to 2.51 million in the three months to July.

This increase of 80,000 is the largest increase in nearly 2 years according to the Office for National Statistics. The unemployment rate now stands at 7.9%, with youth unemployment rising by 78,000 to 973,000.

The total claiming jobseekers allowance has hit 1.58 million, with the number in employment standing at 29.17 million.

"Clearly this is a very unwelcome set of figures. Any increase in unemployment is something we really don't want to see happen," said Employment Minister Chris Grayling.

The government is looking towards the private sector to offset the job losses in the public sector because of the spending cuts to reduce the UK’s debt levels. This data shows that the slow down of the economic recovery is having severe affects on the labour market.

While the latest figures for the public sector showed a fall of 110,000 between March and June, the number of people employed in the private sector rose by 41,000. The ONS also outlined that total pay for the three months to July rose by 2.8% with bonuses rising by 2.1%.

Many businesses in the UK feel the government needs to instigate a jobs growth programme to stimulate economic growth. The current problem within the labour market means many graduates are been ignored for skilled jobs and businesses are looking for experience which means we may lose a generation of graduates.

Source: Pareto.co.uk, Thursday 15th September 2011