Willott: Unemployment figures show banking crisis has hit real economy

10.27.00am BST (GMT +0100) Wed 15th Oct 2008

Today's Office for National Statistics figures on unemployment revealed that the number of people out of work in the UK rose by 164,000 between June and August - the biggest rise for 17 years - taking the total to 1.79 million. The figures also showed the number of people claiming Jobseeker's Allowance rose by 31,800 to 939,900 in September.

In a further sign of the economic slowdown, the number of people in work and the number of vacancies both fell.

Shadow Work and Pensions Secretary, Jenny Willott said:

"These figures come as no surprise and are only likely to get worse over the coming months.  The effects of the banking crisis have filtered down to the real economy and are affecting people across the county."

“Now the banking rescue package has been agreed, the Government must turn its attention to unemployment and inflation. Real families across Britain are suffering, not just those working in the Square Mile.

“As the number of vacancies shrink, it will be harder and harder to get people back into work. It will not simply be a case of retraining the unemployed if there are no jobs for them to return to.”