Labour Research August 2006

News

Unemployment hits six-year peak

Unemployment is at its highest level for six years. Under the Labour Force Survey (LFS) count, it rose by 90,000 to 1.65 million in the three months to May compared with the previous quarter.

The number of people out of work has continued to rise in nine out of the last 10 months.

The LFS count is the government's preferred measure and includes people not eligible for benefits.

The unemployment rate also rose to 5.4%. Male unemployment rose by 71,000 to 971,000 (a 5.9% rate), and unemployed women rose by 19,000 to 678,000 (a 4.8% rate).

Unemployment under the claimant count was at its highest for four years. Under this count, which only includes those drawing Jobseeker's Allowance, unemployment rose to 956,600 in June from 950,700 in May.

The unemployment rate under this count was steady at 3.0%. Unemployed men on benefit rose by 3,900 to 707,700 (a 4.2% rate), and unemployed women rose by 2,000 to 248,900 (a 1.7% rate).

In response to the figures, TUC general secretary Brendan Barber called for measures to protect jobs in the manufacturing sector.

Manufacturing jobs were down by 112,000 or 3.5% in the three months to May compared to a year earlier and now number just 3.05 million.