Long-term unemployment on the rise
Today’s figures show that long-term unemployment (over 12 months) has increased, reaching 438,000, 54,000 higher than in October 2007.
The number of redundancies in August-October 2008 have also risen 180,000 – up from 139,000 in May–July 2008 – with increases across all industries. The worst affected areas have been distribution, hotels and restaurants, transport and communications, and finance and business services.
In this context we are renewing our calls for Jobseekers Allowance to be increased to give some relief to the millions of people faced with a sudden reduction in their income. Importantly, this measure would also help the wider economy as experts agree that putting money into the hands of those who need it most is the fastest way to provide an economic stimulus, as these people are more likely to spend their cash.
Watch this space for our recession report which will be posted here by the end of the day on Friday.