The number of people claiming jobless benefits has also risen to an 11- year high [GALLO/GETTY]
The number of people claiming jobless benefits has also risen to an 11- year high [GALLO/GETTY]
The number of jobless increased by 210,000 in the three months leading up to July, figures showed on Wednesday, taking the unemployment rate up to 7.9 per cent, Britain's highest since November 1996.
Unemployment in Britain has climbed to its highest rate in nearly 13 years, with 2.47 million people out of work in the recession-hit country, official data has shown.
Analysts have also warned that while layoffs may be slowing, the rate could rise to three million by next year.
"While the deepest job losses are now probably over, the outlook for the labour market remains far from encouraging," Howard Archer, a UK economist at Global Insight, an economic forecaster, said.
"Doubts and concerns over the strength and sustainability of any recovery are likely to encourage businesses to keep their labour forces as tight as possible."
Youth affected
Data released by the Office for National Statistics also painted a gloomy picture for young people out of work, with just under one in five of 16- to 24-year olds looking for employment.
"Even if the recession is technically over, it will continue to feel like one for many people for a long time yet" Vicky Redwood, economist, Capital Economics
"More workers, particularly young workers, are paying a devastating price for the bankers' recession and there is some way to go before unemployment stops rising," Paul Kenny, general secretary of the GMB union, said.
The number of people claiming jobless benefits also rose by 24,400 to 1.61 million in August, the highest since May 1997.
The statistics office said that average earnings, including bonuses, increased by only 1.7 per cent in the three months to July from the year before.
Vicky Redwood, an economist at Capital Economics, said the slowing of pay growth was "most worrying".
"Even if the recession is technically over, it will continue to feel like one for many people for a long time yet," she said.
On Tuesday, Gordon Brown, the British prime minister, told a Trade Union Congress conference that public sector spending will need to be cut to tackle the country's soaring debt.
Unions claimed cuts would prolong the recession and increase unemployment, but all political parties have accepted that there is little alternative.
Data released on Wednesday from the British government says that the unemployment rate in the 
United Kingdom has reached its highest level in thirteen years, with the jobless rate at 7.9%.


2.47 million people are now out of work in the UK, up 210,000 or 0.7% in the quarter leading to July. The unemployment level has not been this high since November 1996.

Young people, aged 16 to 24 years old, have been affected the most by the recession, with 947,000 having been out of jobs, the highest level recorded.

Some economic analysts have suggested that the jobless rate may eventually reach three million, even if layoffs slow.

"While the deepest job losses are now probably over, the outlook for the labour market remains far from encouraging. Doubts and concerns over the strength and sustainability of any recovery are likely to encourage businesses to keep their labour forces as tight as possible," economic forecaster Howard Archer for Global Insight said.