MyFinances.co.uk

Unemployment threat boosts part time work

By Daniel Barnes

16th December 2009

More than one million people have been forced to take part-time work because they cannot find a full-time position, new quarterly employment statistics have revealed.

The large number of employees and self-employed people working part-time is the highest since records began, the Office of National Statistics (ONS) said today, and is a rise of 34,000 on the previous quarter.

According to its latest employment data for August to October 2009, the number of jobless people went up by 21,000 over the quarter to 2.49 million.
This, said the ONS, is the highest figure since the first quarter of March 1995 and puts the unemployment rate at 7.9 per cent. However it was also the smallest rise in the number of jobless since the second quarter of 2008.

Young people, the data also revealed, have not been faring well in the job market, with the unemployment rate for 18 to 24 year olds increasing by 0.9 per cent in the quarter to 18.4 per cent. Again, this is the highest figure since records began.

On a more positive note, ONS statistics also showed fewer people were claiming Jobseeker’s Allowance between August and September and there had been an increase in the number of vacancies.

According to FX payments specialist, Travelex, following the publication of the better-than-expected figures Sterling hit session highs against the Euro and the US Dollar.

Mark Bolson, head of UK trading desk at Travelex, said: “This is great for Sterling’s short-term outlook – the pound is still rising on the back of the data. The news will also provide welcome relief to those concerned about the pace of the UK’s economic recovery.”

He added: “The data will have a stabilising affect on consumer confidence and spending.”

The Building Societies Association (BSA), meanwhile, said the continuing rise in unemployment would have a negative impact on the housing market.