UK jobless total at 1.97 million

UK unemployment rose to 1.97 million between October and December, the highest level since 1997, figures show.

The jobless number climbed 146,000 for the three-month period, data from the Office for National Statistics showed.

For January, the number of those getting jobseeker's allowance added 73,800 to reach 1.23 million.

The unemployment rate hit 6.3%, the highest since 1998, and comes as The Bank of England recently warned of a "deep recession" for 2009.

See how unemployment has risen

Many analysts had forecast that unemployment could reach two million for the three-month period - which would have been the highest since 1997.

But there are fears the situation will worsen further in the months ahead as the economy cools.

Tony Dolphin, senior economist at the Institute for Public Policy Research said: "Unfortunately it seems inevitable that unemployment will exceed 3 million during 2009".

As the recession bites, this strengthens still further the case for making a sharp reduction in the number of non-EU workers permitted to come to Britain Sir Andrew Green, Migration Watch Increase in foreign-born workers

Peter Mooney, head of consultancy with Employment Law Advisory Services, said: "From early in December, the number of firms seeking our help in making redundancies simply exploded."

He added: "Things will certainly get worse before they get better. We would expect to see another significant increase in the number of people out of work in the figures published next month, as many more firms were forced to cut staff early in the New Year."

Young people between the age of 18 and 24 have been particularly hard hit, with the unemployment rate for the three-month period standing at 11.8%.

The number of those receiving jobseeker's allowance has now climbed for 12 consecutive months. At 1.23 million, it stands at the highest level since the summer of 1999.

Apprenticeships

Following the release of the data, David Kern, chief economist at the British Chambers of Commerce, commented: "Unemployment continues to rise in the face of a worsening recession.

"We know businesses do not want to lose key staff, but they are struggling with cash-flow."

Mr Kern added that cutting business rates, freezing the national minimum wage and scrapping plans to increase National Insurance would help firms retain employees.

Prime Minister Gordon Brown is meeting business leaders later to discuss how to help.

We know businesses do not want to lose key staff, but they are struggling with cash-flow David Kern, chief economist, British Chambers of Commerce Special report: Britain's jobless

Executives from Sainsbury's, the Royal Mail, Whitbread, Centrica, National Express and Travelodge are expected to attend Downing Street for the first meeting of the National Employment Partnership.

The companies, as well as NHS and local authority leaders, will agree to advertise all non-specialist vacancies through the Jobcentre Plus network and to start offering more apprenticeships.

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A local employment partnership scheme has been launched to get people back into work.

Councillor Margaret Eaton, chairman of the Local Government Association, said: "The LGA has committed to working with local authorities to increase the number of council apprenticeships by 7,500 to ensure that people are given practical skills that will stand them in good stead for years to come."

Redundancies mounting

BBC business correspondent Nils Blythe says figures on the wider measure of unemployment - which also includes people not claiming benefits - only cover the three months up to December, so do not include the most recent job losses.

However, our correspondent says the total is expected to rise above two million once the latest redundancy programmes are captured in official statistics.

The sector with the largest fall in jobs was finance and business services, which shed 72,000 positions.

As employers seek to cut costs, the number of jobs available falls.

Vacancies for the three-month period fell to 504,000, down 76,000 from the period to October. In the same period a year earlier, vacancies had been 684,000.

A TUC study said that while unemployment in the UK was lower than the European average, it was now increasing twice as fast as the average across Europe.

The UK's unemployment rate remains below the European average, which is 7.7%.

TUC general secretary Brendan Barber said: "The UK began the global recession with a relatively strong jobs position, but our advantage is beginning to disappear as redundancies mount."

In the Bank of England's latest forecast for economic growth and inflation, it said the UK economy would contract sharply in the first half of the year.

Nomura to layoff up to 1,000 employees in London

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Job losses 'hitting older men hardest'

The rise in unemployment and redundancies has hit older workers hardest, new figures show.

Data released by the Office of National Statistics reveals the number of people aged between 50 and state pension age in employment fell by 20,000 in the last quarter, with 17,000 of these being men.

According to the Age & Employment Network (TAEN), men in this age group account for 25 per cent of all men of working age, but 38 per cent of the fall in employment numbers for the last three months.

Chris Ball, chief executive of TAEN, believes firms who layoff older workers in troubled times are actually making things harder for themselves.

"When older workers disappear, organisations lose their talent and knowledge which they may need to kick-start revival," he said.

Companies should also be careful as making a worker redundant on the grounds of age could see their former employee taking them to a tribunal over discriminatory practises, Mr Ball adds.

Recently, David Blanchflower, a member of the Bank of England's monetary policy committee, warned 60,000 people a month could find themselves out of work from October as the economy worsens.

More Job Losses Ahead for the U.K.

Employment levels reach record high

The number of people in work reached a record high, and job-related benefit claimants fell to a 30-year low, but the good news was dented by a series of job loss announcements.

The Government said the official jobless figures, which also showed a 61,000 fall in unemployment in the quarter to December to 1.61 million, the lowest for almost two years, highlighted that the UK continued to have a strong and stable labour market.

But within hours of the figures being published, a series of job cuts were announced, including 600 losses at the Devonport dockyard in Plymouth, 100 at an industrial paints factory in Lancashire, and 150 at a sofa-making company in South Wales.

Meanwhile, a cloud of uncertainty hung over up to 1,100 jobs at Pickfords, the UK's oldest removals firm, after its owner warned the business faced going into administration unless a buyer could be found.

Official data from the Office for National Statistics (ONS) showed that UK employment increased by 175,000 in the three months to December to 29.4 million, the highest figure since comparable records began in 1971, while the number of people claiming Jobseeker's Allowance fell by 10,800 in January to 794,600, the lowest total since the summer of 1975. It was the 16th consecutive monthly reduction.

The number of people classed as economically inactive, including those looking after a sick relative, on early retirement or who have given up looking for a job, also fell in the latest quarter - by 54,000 to reach 7.92 million. But the total is still 51,000 higher than a year ago.

Employment Minister Stephen Timms said: "These figures show we continue to have a strong and stable labour market with both record numbers in employment and the lowest claimant count for 32 years.

"Our welfare reform policies are improving the opportunities for people who have traditionally been the hardest to reach, helping them to make the move off benefits and into work."

John Philpott, chief economist at the Chartered Institute of Personnel and Development, said: "What is surprising is that the ONS figures show no sign whatsoever of the softening in demand for staff identified by various recent independent employer surveys.

"The apparent conundrum might be explained by the normal lag between turning points in economic activity and the eventual labour market fallout. Let's hope for the best - but don't be too surprised if things soon start to take a turn for the worse."

Industry data: Employment in the UK hospitality industry

The hospitality industry in the UK employed more than 1.96 million people in 2007, according to latest Labour Force survey by People 1st, the sector skills council for hospitality, leisure, travel and tourism.

This represents a 5% year-on-year rise, with 94,400 more people now employed in the sector than in 2006.

Only contract catering saw a small drop in its workforce, which fell by 0.55% (or 1,000 people) to 181,000, down from 182,600 in 2006.

The biggest influx of new blood was seen in the hospitality services sector, which grew by 6.9% to add 27,100 new jobs.

However, restaurants (which employ the most people in the sector overall) was not far behind with a 5.4% boost to staff numbers, which increased by 27,000 bodies.

Staff levels at pubs and nightclubs grew by 7.36% (or 21,900 people) while hotels increased their employee numbers by 2.7%, which translates into 6,500 more people than 2006.

The figures for the Labour Force Survey are compiled by each year by People 1st.

Note: Hospitality services refers to hospitality occupations within an organisation where the main purpose is not hospitality (for example, an in-house cook working in an on-site cantee within a manufacturing company).EMPLOYMENT IN THE UK HOSPITALITY INDUSTRY 2004-2007

2004*
2005*
2006
2007
Contract food service provider
179,600
178,300
182,600
181,600
Hotels
247,100
238,400
238,500
245,000
Pubs, bars and nightclubs
368,400
333,900
297,700
319,600
Restaurants
518,700
514,700
499,700
526,700
Hospitality services
402,100
379,900
390,300
417,400
TOTAL WORKFORCE
1,917,300
1,843,000
1,866,300
1,960,700Source: Labour Force Survey

* In these years, individuals with both a main and a second job in hospitality are counted only once

BBC unveils 1,800 job cuts

July unemployment down 28,000 on April total, Office for National Statistics figures show

The government has reaffirmed its commitment to achieving full employment after new figures showed the number of jobless in the UK has fallen.

Office for National Statistics data revealed that 1.65 million people were unemployed in July - about 28,000 less than in April.

Employment minister Caroline Flint said: "Once again we have a strong set of labour market figures with record numbers in work.

"But we are determined to reach full employment, something which would have been unimaginable 10 years ago."

The figures also showed that wages rose 0.1% between June and July, and 3.5% in the year to July.

Online Recruitment Dips In The UK In July; Year On Year Growth Up 34 Percent

South West and Scotland See Strong Growth in Online Recruiting in July

LONDON, August 14, 2007 – Online recruitment activity across the UK declined in July as the Monster Employment Index UK dropped five points, following two months of steady growth. This decrease was caused mainly by significantly fewer opportunities in the banking, finance and insurance; and legal sectors. Regionally, dips in demand were reported in North England, London and the South East, whilst the South West saw substantial growth. Overall, the Index reached 165 points, up 34 percent since July last year. The Monster Employment Index UK is a monthly analysis of millions of online job opportunities culled from different websites across Europe, including Monster.co.uk.

“Despite the slight decline in online job activity in the UK in July, the Index has shown an encouraging growth trend so far this year,” said Alan Townsend, COO, Monster UK and Ireland. “It is not uncommon for job opportunities to fall during the summer months but overall the majority of industry sectors grew in July, which bodes well for continued growth throughout the rest of the year.”

Across the UK, 12 industry sectors saw an upturn in hiring, with the strongest growth seen in engineering; and environmental, architecture and urbanism. The banking, finance and insurance; and legal industries experienced the largest decreases, despite both growing significantly in June. Craft-related workers was the largest growing occupation, fuelled by demand in the production, manufacturing, maintenance and repair industry. Elementary occupations declined the furthest, and technicians and associate professionals saw a notable decrease due to the decline in banking, finance and insurance.

The South West and Scotland, both popular tourist destinations, saw the strongest growth in online job opportunities in contrast to the decreases both regions experienced in June. Growth in the South West was driven by increases in demand for skilled agricultural and fishery workers; and craft-related workers. Online opportunities for legislators, senior officials and managers increased for the sixth straight month, whilst real estate saw a fourth month of decline. In Scotland, growth was fuelled largely by an increase in telecommunications and engineering, which grew for the third month in a row. Demand for service workers and shop and market sales workers showed a slight drop due to the decline in healthcare and social work. North England, London and the South East declined the most.

The engineering sector grew by 13 points, recovering from a slight dip in June. Year-on-year, the industry has grown by 27 percent. All regions showed growth in this sector, with London the main contributor to the increase.

Monster Employment Index UK data for August will be released on September 11, 2007.

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