Unemployment figures have risen again by 81,000 people between May and July. It is a clear sign that the credit crunch is effecting businesses which is leading to staff cuts.
The government’s official unemployment rate increased from 5.3% to 5.5% taking the total number of people unemployed to 1.72 million. The number of people who are claiming jobseekers allowance also rose by 32,500 during this time according to the Office of National Statistics.
The overall number of people in work and the available vacancies also fell. The figures show that unemployment is starting to accelerate and it is expected to reach 2 million people in 2009.
It has also been claimed that number of people out of work for a year or more in 2009 could double. There is an emphasis on the effect that deflation is having which should be of more concern than inflation and there are calls for interest rates to be cut to try and help the problem.
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