UK Unemployment Rate Rises Again.

Recent reports by the Office of National Statistics have revealed that the number of people currently unemployed in the United Kingdom has risen to over 2.22 million in the first quarter of 2009.  The Office of National Statistics revealed these facts, alongside statistics portraying a large rise in benefits claims which rose over 57,000 in the month of April alone.

This news comes amidst recent reports of economic growth and many analysts forecasting that pound sterling is to remain strong amidst the turbulent financial crisis.  But, while economic output has increased, unemployment rates continue to rise and at the minute, they stand at around 7.1%.

With the rise in unemployment, average growth of earnings fell 0.2% to a meagre 3% for the first time since 1991.  It would seem that the labour market in the United Kingdom is nowhere near as optimistic about economic recovery as the financial market is.

The fact that the rise in benefits claimant’s has been smaller than expected, perhaps softened the blow, but forecasters predict that unemployment will continue to grow until the end of the year.  Experts say that figures of 10% or more are not unlikely.

In the past year, over 592,000 British workers have lost their jobs and became unemployed.  Trade union spokespersons have commented that unemployment should be the main concern of the government as it is the number one emergency that the country now faces.

Whilst many economic analysts are looking optimistically towards the future highlighting the current strength of the pound and the possibilities that the recession may be over, this is merely a temporary blip if unemployment figures continue to rise.  With over 2.261 million people now unemployed in the United Kingdom; this is the highest seen since November 1996.

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