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British unemployment rate hits 7.8%, highest since 1996
Posted: 12 August 2009 1719 hrs

 
 
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LONDON : Britain's unemployment rate rose to 7.8 per cent in the three months to June, hitting a 13-year peak, and the number of unemployed was the highest for 14 years, official data showed on Wednesday.

The latest unemployment rate, calculated according to the International Labor Organization (ILO) method, stood at the highest level since November 1996, the Office for National Statistics said in a statement.

Market expectations had been for a lower rate of 7.7 per cent, according to analysts polled by Dow Jones Newswires.

British unemployment, according to the ILO measure, climbed by 220,000 to 2.43 million people in the three months to June - which was the highest level since September 1995.

The ONS added on Wednesday that the number of people in Britain claiming benefits increased 24,900 in July to 1.58 million.

Economist Howard Archer, at the IHS Global Insight consultancy, described the unemployment outlook as "horrible" amid a deep recession in Britain.

"The outlook for the labour market still looks pretty horrible, despite mounting signs that the economy could achieve modest growth in the third quarter," he said.

"Unemployment is a lagging indicator and the sharp economic contraction suffered between the second quarter of 2008 and the second quarter of 2009 will continue to weigh down on the labour market for an extended period." - AFP/ms

 

 


 
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