Yorkshire is biggest loser as jobless tally hits 17-year high

The jobless tally in the region now stands at 259,000 - 9.7% - an increase of 32,000 on the previous quarter. By contrast, the north west saw a 10,000 drop.

Nationally, 100,000 people joined the ranks of those looking for a job. Youth unemployment reached a record high of 991,000, while the numbers claiming jobseeker’s allowance increased for the seventh month in a row, to 1.6 million.

Other figures showed a 178,000 slump in employment in the quarter to August - the biggest fall in more than two years - and the largest-ever cut in the number of part-time workers, down by 175,000.

There was a record reduction of 74,000 in the number of over-65s in employment, according to today’s data from the Office for National Statistics.

Unemployment increased by 114,000 to 2.57 million, the worst figure since the autumn of 1994, giving a jobless rate of 8.1%, the highest since 1996.

The number of 16 to 24-year-olds out of work increased by 74,000 over the latest quarter to 991,000, a rate of 21.3%, the highest total since comparable records began in 1992.

Other figures showed that the number of people classed as economically inactive increased by 26,000 to 9.35 million, a rate of 23.3%.

Taking the inactivity rate and the new jobless figures together, half of 16 to 24-year-olds are now not employed, it was revealed.

The claimant count, covering those on jobseeker’s allowance, increased by 17,500 in September to 1.6 million, the seventh consecutive monthly rise and the highest total since the beginning of last year.

Around 150,000 people were made redundant in the latest three months, an increase of 6,000 over the previous quarter.

The number of unemployed 16 and 17-year-olds increased by 3,000 to 205,000, while long-term unemployment, counting everyone out of work for more than a year, rose by 60,000 to 867,000.

Employment fell by 178,000 to 29.1 million, the biggest quarterly fall since the summer of 2009, while part-time employment dipped by a record 175,000 to 7.78 million.

Average earnings increased by 2.8% in the year to August, down by 0.1 percentage points over the previous month, giving an average wage of £463 a week.

Around 4,000 working days were lost in August through 10 industrial disputes, taking the 12-month total to 423,000 from 119 stoppages.

Employment Minister Chris Grayling said: “It is clear that we are seeing the effect of the international economic crisis on the UK labour market.

“That’s why last week we announced the right-to-buy housing scheme to support growth and today we are offering more support for jobseekers as sector-based work academies come on stream, combining real training, work experience and a guaranteed interview.

“Our new Work Programme is now up and running and offers people who have lost their jobs flexible, tailored support to get back into jobs and stay there.”

The Government said it was taking steps to support growth and rebalance the economy, including the creation of 11 new enterprise zones, designed to boost local growth and create more than 30,000 new jobs by 2015, four annual reductions in corporation tax, cutting the small companies rate, expanding loan guarantees and investing in science and apprenticeships.

Paul Kenny, general secretary of the GMB union, said: “The Tories and Lib Dems’ big gamble that private sector growth would create enough jobs to compensate for their cuts in public sector jobs has not come off, as the rise to 2.57 million without jobs shows.

“In the middle of the worst international recession for 80 years, the Government itself is creating unemployment, with 250,000 public sector posts already gone and still more to come. These posts could have been available to the 2.57 million workers now facing the despair of mass unemployment.

“Government policy is hurting but it’s not working. The squandering of human talent through unemployment is a crime that will haunt future generations.”

Bob Crow, general secretary of the Rail Maritime and Transport union, said: “These shocking figures show that it is women and young people who are taking the heaviest hit from this ConDem Government’s slash and burn attack on public services and the wider economy.

“Lives have been devastated while the bankers and speculators who created the financial meltdown have got away with murder.

“The pretence from the Government that they care two hoots about working people is blown apart by their wilful destruction of thousands of manufacturing jobs through the betrayal of Britain’s last train builder, Bombardier in Derby.”

TUC general secretary Brendan Barber said: “These are terrible figures. The Government’s austerity measures have turned unemployment into a full-blown crisis - with job losses not seen since the darkest days of the recession.

“Worryingly, this is not simply the result of Eurozone troubles. This unemployment crisis is state-sponsored, and areas like the North East are paying a heavy price, with over one in 10 people out of work.

“The news for those in work is bleak too, with wage rises falling back to just 1.8%, and creating an tighter squeeze on living standards.

“The Chancellor’s Plan A has sent unemployment to a 17-year high. This country urgently needs a plan B to get people back into work.”

Barnardo’s chief executive Anne Marie Carrie said: “Today’s launch of sector-based work academies is good news for over-18s claiming jobseeker’s allowance but there remains a shortage of opportunities for younger teenagers who are not in education, training or employment.

“Social mobility will remain a distant dream if the Government does not take decisive steps to rescue young people earlier from the crisis of youth unemployment in this country.

“We risk the creation of a stagnant society if concerted action by Government, local authorities and employers is not urgently taken to tackle the lack of sustainable jobs and training opportunities for young people.”

David Kern, chief economist at the British Chambers of Commerce (BCC), said: “Given the worsening global economic situation and the Government’s tough austerity plan, the latest labour market figures are not surprising.

“The figures are concerning, and reinforce the need for the Government to boost the private sector’s ability to create jobs, and employ those people likely to lose their jobs in the public sector over the coming year.

“Cutting red tape and enabling people to acquire the skills they need for employment will help businesses increase their workforces.

“The number of unemployed people aged 16-24 rose by 74,000 over the quarter, but has not yet reached a million. Although this includes people in full-time education who are looking for part-time work, the total number of unemployed people aged 16-24 is the highest since comparable figures began in 1992.

“The BCC’s September forecast predicted that total unemployment would rise to 2.62 million by the end of 2012. However, on the basis of these figures, there is a risk that the jobless total will be even higher next year.”

Martina Milburn, chief executive of youth charity the Prince’s Trust, said: “The number of unemployed young people is now almost twice the population of Manchester. If we fail to tackle youth unemployment now, we risk losing this talent forever, which would be a tragedy.

“At the Prince’s Trust, the number of calls to our helpline has more than doubled in the past six months alone. We need Government and employers to work with us to turn these young lives around.”

Nick Pearce, director of think tank IPPR, said: “Today’s figures show that young people and women are being hit hardest by Britain’s jobs crisis, with the highest numbers out of work for a generation.

“Being out of work for more than a year can have a scarring effect, making it harder to get a job, as well as having a negative impact on one’s health and well-being. The Government’s decision to abolish job guarantees for young people may leave a generation of young people scarred for many years to come.

“The longer someone is out of work, the more they lose motivation and confidence. They also miss out on vital training and work experience.

“This means that even when employment starts to pick up again, they will find it hard to compete with other jobseekers and could find themselves permanently shut out of the jobs market.

“The longer someone is unemployed, the less likely they are to ever return to work. The Government should guarantee everyone who has been unemployed for more than a year a job at the minimum wage.”

Ian Brinkley, centre director at the Work Foundation, said: “The labour market figures are very troubling. The fall in employment of 180,000 in a single quarter is comparable to the quarterly losses seen during the depths of the last recession.

“Unemployment among young people between the ages of 18 and 24 is increasing twice as fast as for the workforce as a whole and there has been a dramatic increase in long-term youth unemployment.

“The main mitigating factor in today’s figures is that total hours worked has remained stable, with most of the job losses being part-time. People still in work seem to be increasing their hours at the same time as the workforce contracts.”

Wales’ Business and Enterprise Minister Edwina Hart said: “Today’s figures are extremely disappointing and reflect the fragility of the global economy.

“Whilst many of the macro economic levers are the responsibility of the UK Government, we are continuing to do all we can to support businesses in Wales.

“Our new £75 million Jobs Growth Wales scheme will create 4,000 jobs a year for three years for young jobseekers across Wales, and our extended adapt programme is targeting people who have lost jobs in the public sector and is helping them to retrain and to get back into work.”

Shadow work and pensions secretary Liam Byrne said: “This is a day of judgment for the Government.

“Today’s figures are the clearest proof yet that the Government’s decision to cut too far and too fast is hurting and just not working. Unemployment is soaring, and more young people are out of work than ever before.

“Britain now needs a change of direction. What we now need is a new plan like Labour’s five-point plan for jobs and growth. Getting people - and our young people - back to work is quite simply the safest, surest way to get the deficit down and put Britain on the right course for the future.

“Today Labour has summoned the Chancellor to the House of Commons for an all-day debate on jobs and economy. The question he must answer is simple: will he now change course?”

Dave Prentis, Unison’s general secretary, said: “Here is yet more proof that this Government’s policies are wrong for the economy. Our recovery is not even off the starting blocks and the toll of job losses keeps on mounting.

“Today’s figures show that young people are paying a heavy price for the bankers’ recession - the Government must act to give them hope for the future. Long-term unemployed figures are also climbing. To be out of work for more than 12 months has a huge impact on people and their families.

“The Government must put a stop to public sector job losses because they are hitting the private sector, and our chances of recovery, hard. There are fair alternatives such as getting the banks to pay their fair share, introducing a small (0.05%) tax on financial transactions, and raise billions that can be used to stimulate growth and recovery, and give hardworking people back some hope.”

Public and Commercial Services union leader Mark Serwotka said: “Almost daily now, new evidence is coming out that our economy is on the brink of another recession and our Government is recklessly and cruelly driving us over the edge.

“Before they abandon a generation to unemployment for ideological reasons, ministers need to urgently invest in our future and halt the cuts that are wreaking havoc across the country, not least to the very staff who can get people back to work, earning money and paying their taxes.”

John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), said: “These labour market figures are truly horrific, with the economy shedding almost 15,000 jobs each week between June and August.

“The quarterly rise in unemployment is reminiscent of an economy in recession rather than any kind of recovery and confirms that the private sector just isn’t creating enough jobs at present to offset public sector job cuts.

“With 5.6 unemployed people for every job vacancy, the labour market is back to where it was in the depths of recession in 2009 and the underlying problem is getting even worse, given that one in three unemployed people have now been without work for over a year.

“Many more months like this and we’re likely to see the re-emergence of the kind of ‘Gissa Job’ economy that scarred Britain in the 1980s and 1990s.

“As the CIPD expected, youth unemployment didn’t rise by the 85,000 figure required to take the total above one million by the end of August. However, given the background deterioration in the labour market, we now expect that milestone to be reached next month.”

Graeme Leach, chief economist at the Institute of Directors, said: “These are grim figures, and are likely to get worse before they get better, but abandoning the deficit reduction plan will do the unemployed no favours.

“The hope is that Quantum Easing 2 will lift the money supply and economic activity, but the ongoing euro crisis is pushing the UK towards a double-dip with increasing speed. All this is before the threat of contagion has actually materialised. We are sailing in stormy seas.”

A spokesman for London mayor Boris Johnson said: “We are very concerned about these figures and painfully aware of the challenge to create jobs and opportunities in the capital.

“That is why the mayor champions the great wealth creators of the capital, has delivered more than 28,000 apprentices and channelled £50 million of European funding to help those not in education, employment or training.

“He will continue to encourage employers in London to do all they can to offer jobs, apprentices and work experience.”

Nigel Meager, director of the Institute for Employment Studies, said: “These poor labour market figures are no surprise given the current economic situation, with GDP stagnant and 5% below its pre-recession level.

“At the start of the recession, unemployment was the dog that didn’t bark, but it’s now starting to make quite a bit of noise.

“Unemployment initially grew less than expected, as many employers hung on to their workers, often through short-time working or pay freezes.

“Now, however, many firms with their businesses still in the doldrums are having to shed the staff they retained in the early stages of recession.

“Even those firms whose business is picking up can often still cope without recruiting new staff. The accelerating pace of public sector job losses as the cuts start to bite is clearly making things worse.”