· News

TUC sees similarities between current economic slump and 1980s recession

The current recession is more like the deep recession of the 1980s with steep unemployment than the 'shallow' downturn of the 1990s and there are "no signs of improvement for unemployment", according to the TUC.

The TUC has calculated the rate of unemployment (at 30%) is increasing faster in this recession than in the 1990s when it was 22% and the 1980s when the rate of increase stood at 29%.

And while the TUC believes the roots of recession lie in the City of London unemployment is rising faster in other areas. In the North East the proportion of people claiming unemployment benefits has risen from 3.9% to 6.4% whereas in London it has increased from 2.7% to 3.8%.

Brendan Barber, general secretary of the TUC, said: "The chancellor is likely to be right when he says this is the worst recession for 60 years. The picture for jobs and growth is already bleaker than the last recession and is looking more like the deep recession of the 1980s every day.

"Contrary to what some commentators say there are no signs the outlook for unemployment is starting to improve. The difference between the number of people losing their jobs and finding new ones is already greater than during the 1990s recession. And even when the economy does start to grow again, unemployment will carry on increasing for a good while to come - until at least the end of next year."