Unemployment highest for 17 years

Unemployment is at its highest level since 1994 and youth unemployment at a record high, the latest official figures show.

Unemployment under the Labour Force Survey (LFS) count was up sharply by 114,000 to 2.57 million in the three-month period June to August — the highest figure since October 1994.

The numerical rise caused the unemployment rate to rise sharply to 8.1% from the previous three-month’s figure of 7.7%. Both the number of unemployed men and women posted rises, but it was youth unemployment that hit the headlines.

The number of unemployed 16- to 24-year-olds was 991,000 in the three months ending August — one in five (21.3%) of the age group. The fears are that it could hit one million.

TUC general secretary Brendan Barber said the figures were “terrible” and Len McCluskey, general secretary of the Unite general union, said they were a “scandal”.

Barber said: “This unemployment crisis is state sponsored … the chancellor’s plan A has sent unemployment to a 17-year high. This country urgently needs a plan B to get people back into work.”

On the other official count — the claimant count — the number claiming Jobseeker’s Allowance in September rose by 20,300 to 1.6 million. This is the seventh consecutive monthly rise. The claimant count rate edged up to 5.0% from 4.9%.