Unemployment hits 16-year high

UK unemployment reached a 16-year high in the three months to February 2010 according to figures released by the government today.

The Office for National Statistics (ONS) said that unemployment jumped 43,000 to 2.5m during the period.

While the figure is at its highest since 1994, the percentage of unemployed, which is now 8%, is at its highest since 1996.

Unemployment is proving particularly problematic for young people, with 929,000 16-24 year olds out of work from December to February, up 4,000 on the previous quarter.

The current economic crisis appears to have driven more young people into education, with a record 8.16m classed as economically inactive, out of work and not seeking work. This figure, which rose by 110,000 in the period, is the equivalent to 21.5% of the population and has been put down to an increased number of students.

Unite assistant general secretary Tony Burke said: "The rise in unemployment is disappointing and worrying. We know we have more job losses on the horizon that will feed through, and there are few vacancies around at present.

"The economic structure of the printing industry across the UK and in the EU is still changing as well. One of the problems is that many print workers who are made redundant are leaving the industry for good and at the other end companies are not taking on young people as apprentices or retraining - this will leave us with a skills gap as the economy and the industry recovers."

Elsewhere, unemployment benefit claimants fell three times faster than expected in March, as 32,900 fewer people claimed jobseekers' allowance.

According to several national newspapers, economists expected a reduction of around 10,000. The figures for March follow a fall of 40,100 in February, which was the sharpest drop since June 2007.