Unemployment rises at lower than expected rate

Recently released figures have shown that the level of unemployment rises have been lower than expected, adding to the variety of encouraging data that has been seen in a variety of recent report lately.

Officials from the Office for National Statistics said that a year ago unemployment levels were at 5.3 percent, and this has now increased to 7.2 percent. However, industry experts had been expecting this to increase to 7.3 percent, so it is lower than had been forecast.

However, despite these encouraging figures a number of industry experts have warned that not too much should be read into this, as the full effects of job losses at the end of last year and the start of this year may not have taken effect as yet, and the jobless numbers could continue to increase.

One leading economist said: ‘Despite the recent improving trend in the claimant count unemployment data, it is likely that the number of jobless still has some considerable way to rise,’ said Howard Archer of City forecaster IHS Global Insight.

He added: ‘While the economy appears to have at least temporarily stabilised, unemployment is a lagging indicator and the extended deep economic contraction seen in the second half of 2008 and the first quarter of 2009 will continue to feed through to hit the jobs market pretty hard for some months to come.’

A union leader added: ‘If we are to avoid the 10% unemployment rates of the 1980s and 1990s it is imperative the Government continues to invest in tackling unemployment. Youth unemployment is now at its highest rate for 15 years, and it will get far worse when millions of fresh school leavers and graduates start looking for work in the coming weeks. Unemployment leaves a permanent scar on young people’s lives and Government must do all it can to stop joblessness blighting another generation’s lives.’

Tags: fresh school leavers, unemployment, unemployment rates, highest rate, Global