Forex News – UK unemployment rises

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The UK’s unemployment rate in August rose to 8.1 percent, marginally higher than the 8.0 percent. This is the highest rate since October 1996. July’s jobless rate was at 7.9 percent.

The claimant count change increased by 17,500 in September which was lower than the 25,000 forecast. This measures the change in the number of people claiming unemployment-related benefits during the previous month.

However, the Office for National Statistics said the number of people without a job on the wider ILO measure jumped by 114,000 in the three months to August to 2.57 million, the highest total since October 1994.

What contributed to the jump in the rate of unemployed was the fact that private companies failed to make up for the job losses in the public sector,

The increase in jobless numbers will put more pressure on the government to boost the economy, which has barely grow n over the past year as consumers cut back spending and key export markets are slowing.

The Bank of England launched a fresh round of stimulus last week, pumping an additional 75 billion pounds into the economy in order to prevent a renewed recession. BoE economist Spencer Dale told Reuters in an interview the economy was likely to weaken further in the final quarter of this year.