By Elliot Wright, 17th February 2010
The number of people claiming jobless benefits jumped last month
despite a fall in unemployment, according to official figures.
There was a 23,500 increase in jobseeker's allowance claimants,
bringing the total to 1.64m in January - the highest level since
Labour came to power in 1997.
The figure, released today by the Office for National
Statistics, is in stark contrast to the 10,000 drop analysts had
been expecting.
There was also a massive surge in the number of unemployed
persons out of work for more than a year, with the figure now at a
13-year high of 663,000.
In a further blow, the number of people of working age to be
deemed economically inactive has hit 8.08m - the highest level
since records began in 1971. The figure represents a staggering 21%
of the population.
Despite the rise in jobseeker's allowance claimants, the overall
unemployment number fell by 3,000 during the last quarter of
2009.
The unemployment figure now stands at 2.46m. Somewhat
contradictorily the number of people employed also fell by 12,000
during the period. This is due to a greater number of people
retiring, or becoming unable to work, and therefore not classed as
unemployed by the ONS.
The financial industry says that people should remain cautious
despite the promising unemployment figures.
Susan Barclay of insurance firm Scottish Provident said: "While
today's news that unemployment figures have fallen for the second
consecutive month is certainly positive, it should be approached
with a certain degree of caution.
"Although short term unemployment has dropped the amount of
people unemployed for more than 12 months has increased by 37,000
over the quarter. This is the highest figure since the three months
to September 1997 and shows that the threat of unemployment
continues to loom large for many people throughout the UK.
Claims Financial
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