Unemployment Levels Reach 12-Year High

Unemployment levels in the UK have risen by 232,000 to 2.26 million in the three months to April - the highest level in more than 12 years.

The Office for National Statistics (ONS) also said the number of people claiming jobseeker's allowance increased by 39,300 in May to 1.54 million, which is the highest since the summer of 1997, and less than the 60,000 which analysts had originally forecast.

Although analysts welcomed the data, they said it was too early to hail it as a turning point in the recession.

David Kern, Chief Economist at the British Chambers of Commerce, said: "These jobless figures are slightly better than feared, but the overall situation remains grim.

"It is much too early to talk about the end of recession and it is important not to withdraw the policy stimulus before there is firmer evidence that the economy has stabilised."

The claimant count rate rose to 4.8%, the highest since November 1997, while average earnings rose 0.8%, more than expected, in the three months to April, the ONS added.

Other figures released by the ONS showed youth unemployment has reached its worst level since 1994, following a 74,000 increase in the number of 18 to 24-year-olds out of work to 695,000.

This has lead to widespread concern that many of the 600,000 who will be leaving school, college or university this summer will not find employment.

A group called Youth Fight for Jobs are to hold a protest today outside the Department for Business, Innovation and Skills to demand more support from the government.

Sean Figg, national organiser for the group said: "We have to fight to prevent an entire generation being written off.

"Unless the issue of youth unemployment is tackled seriously we are storing up a raft of social problems for decades to come."

Meanwhile, the number of those in work fell by 271,000 over the three months to 29.11 million, the biggest quarterly slump since comparable records began in 1971.

(JM/BMcC)