The future looks bleak for the 2.2 million now unemployed in the UK
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The unemployment rate has risen to 2.2 million and unemployment benefit claims rose by over 57,000 to 1.5 million in April
Figures from the Office of National Statistics show the unemployment rate of the UK now stands at 7.1 per cent of the workforce, a rise from 6.7 per cent at the end of 2008 and significantly worse than the 6.9 per cent the government had been expecting. Brian Hilliard, chief UK economist of French bank Societe Generale, thinks the situation will worsen, “I fear that the unemployment rate… is certain to deteriorate much further. We’re looking at figures of 10 per cent around the turn of the year.”
The Employment Minister Tony McNulty said the figures were ‘very bad’ but pointed out the rate of the rise in unemployment benefits was much slower than expected, and that the level of city bonuses seemed to have gone down significantly.
This announcement came hot on the heels of the news that 2,000 jobs are at risk as greetings card chain Birthdays was put into administration by its owner, Clinton Cards.
A spokesperson for Clinton Cards said the chain would continue to operate while they explore new options for the business: “We remain hopeful of securing the future of the business despite the harsh trading environment being experienced by all retailers at present. These stores have a strong brand identity and are predominantly situated in excellent retail locations and there are still plenty of opportunities to succeed on the High Street.”
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