UK Unemployment Heads Over 1 Million

by Dave Keating | December 17, 2008 at 04:21 am

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Dismal unemployment figures have been released this week in teh UK showing that unemployment is rising rapidly, with the total number of people seeking jobless benefits now over 1 million. The speed of this increase echo a similiar increase in the US.

Unemployment in Britain has surged at its fastest rate since 1991, taking the total number of people claiming jobless benefits to over 1 million for the first time in seven years, adding to the increasingly bleak outlook for the economy.

The number of people out of work and claiming Jobseeker's Allowance jumped by 75,700 in November from the previous month - much more than expected - to hit 1.07 million, figures from the Office for National Statistics showed this morning. It was the biggest monthly rise since March 1991 and bigger than the 45,000 increase expected by most economists in the City.

Sterling hit a fresh record low against the euro of €1.0985 on the news, which coincided with the publication of the minutes of the Bank of England's last meeting. They showed that its rate-setting committee voted unanimously for this month's one percentage point cut in interest rates and discussed whether an even bigger reduction might be needed.