Figures published yesterday by the Office for National Statistics, show a rise in unemployment (ILO measure) to 2.49 million.
The number of people claiming Jobseeker's Allowance has also seen a rise of 37,000 to 1.56 million underlining that there are still challenges in the labour market. The number of people in employment has increased by 25,000 to 29.27 million indicating that more people have moved into the labour market this quarter.
Ministers are concerned about a rise in unemployment, which is why yesterday they announcing the location of eleven new Enterprise Zones, designed to boost local growth and create over 30,000 new jobs by 2015.
Employment Minister Chris Grayling said: "[The ONS statistics] are disappointing figures but we always said that the road to recovery would be choppy. Clearly this has been a difficult few months with a range of one-off factors and a slowdown in the world economy having an impact on the UK. This is why is we are focused on taking steps to increase growth, support the economy and encourage businesses to invest and create jobs.
"For people who lose their jobs, our new Work Programme is now up and running and will offer jobseekers flexible support tailored to their needs to help them into employment."
The Government has introduced measures to stimulate growth including the location of eleven new Enterprise Zones, designed to boost local growth and create over 30,000 new jobs by 2015; launching the new £1.4 billion Regional Growth Fund (RGF) for projects to support growth; cutting corporation tax; exempting small businesses from new domestic regulation; absolving new businesses from paying employment taxes on their first employees; creating "real incentives" for businesses to grow and create job opportunities; investing in science and apprenticeships and; launching the New Enterprise Allowance (NEA) which will help up to 40,000 businesses get up and running.
The new £1.4 billion Regional Growth Fund (RGF) is providing support for projects that can drive sustainable economic growth. The first round saw numerous businesses and projects make successful bids for significant funding to create and safeguard jobs. Considering the amount of private sector investment many of the successful bids are already bringing in, the value of the RGF is several times more than the Government input of £1.4 billion.
The Government recently launched the new Work Programme to give jobseekers the help to get back into sustained employment. Private and voluntary sector organisations are investing £581m upfront in the biggest welfare to work programme this country has ever seen to provide tailored support built around the needs of individuals. Organisations will be paid by results and allowed to develop support that really addresses the needs of jobseekers.
In 2011-12 the Government will increase funding for apprenticeships to over £1.4bn, sufficient to train 360,000 apprentices, giving people the training that builds successful careers and enables businesses to gain the skills they need to grow.
