UK Employment Update
The UK unemployment rate worried economists as it rose from 7.8% to 7.9% from February through April.
The difference is only 0.1% but it equals 23,000 jobless people, which increased the total unemployment number to 2.47 million.
In addition, official statistics also showed that those out of work and not seeking employment also rose with 29,000 during the same period – or 21.5% of the working age population.
Experts say that the UK’s austerity measures will increase unemployment even more because part of the spending cuts will affect the public sector employment.
John Walker, national chairman of the Federation of Small Businesses (FSB), said:
“The FSB believes that while it is important that the government cuts the deficit – something that over 90% of FSB members agree with – it must not be at the expense of the recovery or mean a hike in taxes for small businesses.”
TUC general secretary Brendan Barber also added, “The worst possible response would be to slash spending, which will cut demand in the economy and send hundreds of thousands of public and private sector workers on to the dole.”