Thursday, June 12, 2003
Unemployment rose sharply in May, recording its single biggest monthly rise in ten years, according to the latest data from the Office for National Statistics (ONS).
The number of people out of work and claiming benefit rose by 9,700 last month to 950,800, a surprising leap following months of steady decline in unemployment.
The total number of people without employment also rose, with 36,000 workers losing their job in the three months to April, bringing the overall total to 1,485,000.
Yet again, the ailing manufacturing industry bore the brunt of the latest gloomy economic news, with job losses being particularly heavy in the beleaguered sector.
The number of employees working in manufacturing fell by nearly four per cent in the 12 months to April. There are now 3.53 million workers in manufacturing firms, the lowest number since records began in 1984.
Unions seized on the figures and urged the government to take urgent action to help prevent any further job losses in the manufacturing sector.
Bill Morris, general secretary of the General Workers Union (GWU), said that hidden within the figures is further evidence of the special problems facing manufacturing in the UK.
“With industrial-based jobs not at their lowest level since records began, there is a clear imperative for action.
“We cannot continue to export our manufacturing jobs and skills at this unsustainable rate. The government must act firmly to link its public procurement and public expenditure policies.
“Businesses should respond by investing to improve productivity, not rewarding its boardrooms for continuing failure,” he said.
However, the employment news was not all bad – the ONS figures revealed that the actual number of people in work increased by 51,000 to 27.87 million – the highest ever total.
Analysts claim that the conflicting trends of a rise in both joblessness and employment was due in part to a large number of women entering the workforce for the first time.
While unemployment is still relatively low compared to the UK’s European counterparts, the Bank of England’s Monetary Policy Committee is expected to come under renewed pressure to cut interest rates in order to boost the economy next month.
http://www.startups.co.uk/newspiece.asp?newsid=2750&zsectionid=1&subsectionid=1&source=newsnow