Unemployment rises again, to 2.685m

By Neal Wallace

Unemployment in the UK rose again in the three months to the end of November, according to official figures.

There are now 2.685 million people out of work in Britain, a rise of 118,000 since previous statistics were released. The unemployment rate also rose to 8.4 per cent, from 8.3 per cent - the highest rate since January 1996.

Jobseeker's Allowance claimants also saw an increase, rising by 1,200 to 1.6 million. This figure was lower than expected, coming from a lower base than had been thought. November's claimant count was also revised down, to a rise of 200.

The number of young people who do not have a job also rose, to 1.043 million, in the three months to the end of November, which took the unemployment rate in the 16-24-year-old age category to 22.3 per cent.

However, UK inflation fell to 4.2 per cent last month, meaning the dire economic outlook could be improving.