Unemployment jumps by 10%

The UK's official measure of unemployment has risen to 2.43 million people, latest figures show.

According to the Office for National Statistics, the number of jobless working age people in the UK rose by 220,000 in the three months to June, reaching its highest level since 1995.

And with fewer jobs available, the statistics suggest that people are now finding themselves out of work for longer periods of time.

The number of vacancies fell by 26,000 to 427,000 in the three months to July, while the number of people registered as having been unemployed for more than 12 months rose by 36,000, to 543,000, in the three months to June.

Some 1.58 million people claimed benefit for being out of work in July, up 24,900 on June and up 709,000 on a year earlier.

The British Chamber of Commerce (BCC) repeated its call for the Government to scrap plans to increase National Insurance contributions in light of the new figures.

"Even if the economy starts growing later this year, it is likely that unemployment will continue rising at a rapid pace," said David Kern, chief economist at the BCC.

"There is still a realistic chance that the jobless total will exceed 3 million next year and it is important for the Government to address this."

General secretary of the Trades Union Congress, Brendan Barber, said that, while the Government's Future Jobs Fund "could provide real hope" it must "be expanded so that more people - including older jobseekers who face never being able to work again - can benefit from it"

IMAGE AP Photo/Alastair Grant