UK Unemployment Rate

August 13th, 2009 | unemployment -

Unemployment: Source: ONS

ILO-defined unemployment in April to June was 2.44 million (7.8%) – up by 220,000 unemployed on the quarter and 750,000 from this time last year.

The claimant count for key out-of-work benefits was 1,582,700 in July – up by 24,900 on last month, and up 709,000 on last year.

Measuring Unemployment

The recession has led to a sharp rise in Unemployment. With output expected to fall by a record 5.5% this year, it is hardly surprising unemployment has risen. In fact, we might have expected a higher rate of unemployment.

The growth in unemployment has been limited by factors such as a growth in part time worker and decline in participation rates. The outlook for workers, especially young people entering the labour market is grim.

International Comparisons of Unemployment with EU and US.

Unemployment ILO comparisons

This shows that unemployment in the US has increased faster than in the Eurozone. This partly reflects the fact US labour markets are more flexible. Therefore, it is easier to fire workers in the US. But, in the Eurozone area, firms appear more reluctant to take workers on during periods of growth.

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