Unemployment rose by 137,000 in last 3 months

In the three months to October there was a rise in unemployment by 137,000 to 1.86 million which is the highest level since 1997. This indicates the effect that the credit crunch is beggining to have on companies. Companies are looking at ways of cutting costs to ensure they survive during these difficult times. However, companies must remember that they should keep there most skilled staff as although they cost the most they are the people that will help them recover after the economy has recovered. The Office of National Statistics has said that unemployment is now up to 6%.

The number of people claiming jobseekers allowance in November also rose by 75,700 to a total of 1.07 million which is the largest rise since March 1991. Many companies have made big job cuts as the grip on the economy tightens. As christmas approaches people are becoming more nervous as to whether they will still have there jobs when they come back after there holidays.