Unemployment rate rise from March to May is highest ever recorded

According to a report today from the Office for National Statistics (ONS), the unemployment rate is 7.6% - the highest for 10 years.

Commenting on the findings, David Kern, chief economist at the British Chambers of Commerce (BCC) said: "These figures make grim reading and confirm our assessment that although the recession is easing, unemployment is set to continue rising at a rapid pace. On the basis of these numbers, we reaffirm our forecast that unemployment will peak at around 3.2 million next year.
 
"The serious labour market situation highlights the need for persevering with a forceful policy stimulus. The Monetary Policy Committee must increase quantitative easing well above the current level of £125 billion."

And Nigel Meager, director of the Institute for Employment, said: "The labour market is entering a new phase. Back in January, the Jobseekers Allowance register jumped by a record 136,600. By contrast, the increase in June was only 23,800. While the largest increases appear to be in the past, at least for now, the composition of unemployment is changing rapidly.

"The fastest-growing group of unemployed is now those who have been claiming benefits for 6 to12 months. Meanwhile, shorter-term unemployment has actually fallen slightly, for the second month in a row. As this trend continues, it is important that the focus of government policy remains on the mounting problems associated with long-term unemployment."