Unemployment is still higher than pre-recession levels in every part of the UK

Unemployment rates and levels of joblessness are higher today than before the recession in every region and nation of the UK and across all working age groups – suggesting that the economy is still less healthy than it was before the recession, the TUC warns today (Monday) ahead of the publication of the latest jobs figures later this week.

The TUC analysis of official figures shows that half a million more people were unemployed in January-March 2014 (the latest available figures), compared to January-March 2008. Yorkshire and Humberside has the biggest jobs gap, with almost 100,000 more unemployed people today than before the recession.

Northern Ireland has the biggest gap between its current and pre-recession unemployment rates. Across Northern Ireland unemployment is currently running at 6.9 per cent, 68 per higher today than six years ago, when it was 4.1 per cent. The unemployment rates in Scotland and Yorkshire and the Humber are 50 per cent higher today than before the recession.

The biggest unemployment gap by age group is among young people, with the number of unemployed 16-24 year olds 167,000 higher than six years ago. In the West Midlands for example, there are currently 20,000 more young people out of work than there were six years ago.

In most parts of the UK the jobs gaps for young people are higher than for any other age group. Unemployment levels are only lower now than six years ago amongst 16-24 year olds in the East Midlands and 35-49 year olds in Wales.

Much of the debate around unemployment has been about the rate falling below seven per cent – the trigger set by the Bank of England for possible interest rate rises. However, with over two million people still out of work – half a million higher than before the recession – and many more under-employed it remains far too early for the Bank of England to be considering an interest rate rise, says the TUC.

The number of unemployed people across the UK is still far in excess of pre-recession levels, in spite of the recent upturn in the jobs market, says the TUC. While the size of the economy is likely to return to pre-recession levels soon, unemployment levels are recovering much more slowly and the analysis shows that more needs to be done to get people back into work.

TUC General Secretary Frances O’Grady said: “The recent upturn in the economy has prompted lots of speculation about an increase in interest rates. Those hawks that are keen for interest rates to rise have forgotten that unemployment is still over two million.

“In some parts of the UK, unemployment is 50 per cent higher than it was before the recession. The talk in the City and around Westminster may be about a fast growing economy but the recovery still feels a good way off for millions of people still desperate for work across the rest of the country.

“The government should be doing more to get unemployment down in every part of the UK. High levels of youth joblessness are particularly concerning. The growing talk of an interest rise is a worrying distraction from this far bigger economic and social problem.”

NOTES TO EDITORS:

Unemployment levels by region and working age groups, January–March 2014

Increase in unemployment levels, January–March 2008 to January–March 2014

Unemployment rate by region and nation, March 2008–March 2014

- Source: Office for National Statistics

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