A recent study by the Office of National Statistics (ONS) has revealed that UK unemployment hit 2.5 million in the three months leading up to November 2010.
The study suggests that unemployment leapt by almost 50,000 over this period. However, the rate of unemployment remained as low as 7.9%.
The period between September and November saw a whopping total of 157,000 redundancies, which indicates an increase on the three months prior to this.
People aged between the ages of 16 – 24 are thought to be the worst affected,
with one in five out of work.
Kevin Green, Chief Executive of the Recruitment and Employment Confederation (REC), also raised concerns about growing unemployment:
“What is particularly concerning about the figures is the growth of 32,000 in the number of 16- to 24-year-olds not in work, which has now hit an all-time high of 951,000. The UK is in serious danger of creating a lost generation of young people who are not in work, training or education.
“With the Government declaring itself pro-business, pro-growth and pro-jobs, it should make this a top priority for the sake of the long term health, wealth and success of the UK economy.”
The Chief Economist with the Institute of Public Policy Research (IPPR),
Tony Dolphin, suggested that the double-dip in unemployment is a “real
prospect.” He went on to add that:
“History suggests the UK economy needs to grow at an annual rate of more than 2 per cent if unemployment is to fall.”
Mr Dolphin believes that there is a very real risk “that growth will not be
fast enough over 2011, and that unemployment will reach new highs for this economic downturn.”
It’s feared that cuts introduced by the UK Government will have a major
impact on growing unemployment, with small businesses operating in the private sector unable to absorb new entrants into the labour market.