UK unemployment rises to 2.51 million

The latest official unemployment figures from the Office for National Statistics (ONS) reveal 80,000 more people in the UK became unemployed in the three months to July. The sharp rise in unemployment is the biggest for nearly two years, as reported by the BBC.

According to the figures, the total number of unemployed people is now 2.51 million, bringing the jobless rate to 7.9%.

Other figures of concern include:

    •Youth unemployment rose by 78,000 to 973,000 in the three months to July.
    •The number of Jobseeker's Allowance claimants increased sharply by 20,300 in       August.
    •1.58 million people are now claiming Jobseeker's Allowance.

The Government has been making heavy spending cuts in the public sector to reduce the UK's debt levels. These cuts have resulted in job losses in the public sector - which the Government planned to 'offset' with jobs in the private sector.

However, economic analysts are saying that the employment figures suggest 'weak economic growth' - there are not enough jobs being created in the private sector. Between March and June, 110,000 jobs in the public sector were lost, but private sector employment increased by only 41,000 over the same period.

A spokesperson for Gregory Pennington commented:

"The sharp increase in unemployment is a real concern. We know that a change in circumstances, such as redundancy, can be a trigger for serious debt problems - making previously manageable debt unmanageable. Anybody with concerns about their own debt should seek advice as soon as possible."