date: 17 December 2008

embargo: For immediate release

Unemployment figures show the awful human cost of the economic crisis

The number of unemployment benefit claimants is rising more rapidly as the recession unfolds says the TUC today (Wednesday).

Today's figures show that the unemployment rate now amounts to six per cent of the working age population. The number of people claiming unemployment benefit has increased by 75,700 in one month, which is a huge increase and an acceleration in the rate at which unemployment is rising. The claimant count rose by four per cent in September, 5.5 per cent in October and by 7.6 per cent in November.

Long-term unemployment (over 12 months) has increased as well, reaching 438,000, 54,000 higher than in October 2007. The number of redundancies in August-October 2008 reached 180,000 - up from 139,000 in May-July 2008 - with increases across all industries. The worst affected areas have been distribution, hotels and restaurants, transport and communications, and finance and business services.

The TUC welcomes the extra money announced yesterday by the Government to help people back into work. However, the TUC believes it is vital that the Government uses all its influence over the banking sector to ensure that credit starts flowing to businesses, in order to prevent a wave of further redundancies in the new year. The TUC also wants to see greater financial support for those who have lost their jobs.

TUC General Secretary Brendan Barber said: 'These figures show that during November the number of people claiming unemployment benefit increased drastically. This is the awful human cost of the financial crash feeding through into the real economy.

'The news that 27,000 jobs may be lost at Woolworths is a terrible blow not just to those employees but also to the firms and jobs that rely on the chain's custom. It will also mean a further dent to business and economic confidence and less spending power in the economy.

'The Government's number one priority must now be on getting unemployed people back to work and ensuring they do not suffer financial devastation while on the dole. If ever there was a sign that we need a fundamentally different economic approach in the UK then this is it.

'Increasing Jobseeker's Allowance from its measly rate of less than £10 a day would give some small relief to the millions of people faced with a sudden reduction in their income. This will also help the wider economy as experts agree that putting money into the hands of those who need it most is the fastest way to stimulate the economy, as they are more likely to spend their money.'

NOTES TO EDITORS:

- All TUC press releases can be found at www.tuc.org.uk

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports from the TUC. Visit www.tuc.org.uk/pressextranet

Contacts:

Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: media@tuc.org.uk
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: rholdsworth@tuc.org.uk
Elly Brenchley T: 020 7467 1337 M: 07900 910624 E: ebrenchley@tuc.org.uk

Press release (600 words) issued 17 Dec 2008