Unemployment rises to 2.67m

15 February 2012 | By Samuel Dale

It represents 8.4% of the UK working population with levels last seen in November 1995, nearly 17 years ago.

A total of 1.6m were claiming Jobseeker’s Allowance in January 2012, up 6,900 on December 2011.

Employment for UK-nationals was down 166,000 between the Q4 2010 and Q4 2011 while over the same period employment for non-UK nationals was up 166,000.

Average wage growth in the three months to December was 2%, unchanged on the three months to November.

Private sector wage growth increased from 2.1% to 2.3% while public sector wages fell from 1.9% rises to 1.7%, the lowest figure since comparable records began in 2001.

But in December 2011 the average weekly pay for the private sector was £462 per week, lower than the total public sector of £477 per week.

One in three unemployed have now been looking for work for over a year, accounting for 823,000 people.

Long-term unemployment is highest for the over 50s, with 45% of them looking for work for over a year.

John Pollock, group board director for Legal & General’s risk businesses, says: “The unemployment rate has not been higher for over 17 years.

“Budgets are being squeezed at every level as people try to manage, particularly with the high cost of food, fuel and utilities. The recent period of severe freezing temperatures will not have helped this situation and put additional burden on many.”

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