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Unemployment rate on the rise

18/01/2006

The unemployment rate has reached its highest level for two years, according to official statistics.

The number of people looking for work rose by 111,000 to 1.53 million in the three months to November, bringing the unemployment rate to five per cent, up from 4.7 per cent on the previous year.

The Office for National Statistics' figures showed that the number of job vacancies fell by 12,700 in the same period.

Manufacturing jobs in particular were down, dropping by 109,000 in the three months to November to a record low of 3.1 million.

The poor figures could prompt a cut in interest rates, experts predict, as well as undermine the emerging upward trend in consumer confidence.

Global Insight's Howard Archer commented: "The labour market continues to soften, indicating that extended below-trend growth is taking a toll."

"A softer labour market threatens to limit the upside for consumer confidence and spending," he added.

The number of people claiming job benefit rose by 7,200 to 909,100 last month.


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