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Bad news from Office for National Statistics: UK unemployment exceeds two million

It is official: unemployment in the UK has broken the two million mark, according to the Office for National Statistics (ONS).

The ONS reported this morning 2.03 million people were unemployed in the three months to January 2009 - up 165,000 from October 2008 and up 421,000 from January 2008.

The working age employment rate in January was 74.1% and in the three months to January 29.3 million people had jobs - this is an increase of 2,000 from October 2008, but a drop of 75,000 from January 2009.

And the number of people in full-time employment was 21.83 million in the three months to January this year, which is a drop of 48,000 from October 2008.

Commenting on the findings, David Kern, chief economist at the British Chambers of Commerce said: "The outlook for unemployment is worsening and there is an urgent need for action. At this rate unemployment looks set to reach 3.2 million in 2010.
 
"Even with some staff accepting pay freezes and working fewer hours, it is clear that employers are facing significant financial pressures.

"There is a vital need for steps specifically aimed at preventing a damaging loss in our industrial skills base. Temporary measures, such as wage subsidies, need to be seriously considered."

Hugo Sellert, head of economic research at Monster Worldwide, added: "The UK online recruitment market expanded for the first time in four months after registering a steep drop in online job opportunities at the end of 2008 and the beginning of 2009. Seasonal hiring in a number of sectors has lifted the results for February. But the longer-term recruitment trends remain down, as the shaky economy and uncertain outlook for 2009 continue to prompt businesses to exercise caution when it comes to new payroll commitments."