According to new figures, Britain’s unemployment rate reached a 14-year high of 2.44 million, undermining hopes that the country is all set to emerge from recession. The number of jobless people increased by 220,000 in the three months to June due to which unemployment hit its peak since 1995.
The jobless rate was also at its highest since December 1996, reaching 7.8% and surpassing the 7.7% figure forecast by analysts. Youngsters and new school leavers have been amongst those hardly hit by the recession with more than 700,000 people aged 18-24 without jobs, an increase of 46,000. The number of unemployed 16-17 year olds increased by 7,000 to hit 206,000.
The employment rate of 16-17 year olds dropped to 28.6 % this quarter from 34% a year earlier. For 18-24 year olds, the rate dropped from 64.1% to 59.8%. The slightest hope was in the number of people claiming benefit which rose by 24,900 against an expected rise of 28,000.
These official figures attenuate a succession of more recent optimistic data according to which Britain was firmly on track to emerge out of the recession.
According to a report by the Audit Commission, the public sector watchdog, the councils have not been doing enough to help people with the fallout of the recession. It also states that Britain was at the risk of an increase in drug addiction, alcoholism and domestic violence if conditions continue to deteriorate.
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