Unemployment rises again and ‘will get worse’
Unemployment rose in the last quarter (April-June 2006) by 92,000 to 1.68m, according to the latest figures from the Office of National Statistics (ONS).
This means that the current UK unemployment rate stands at 5.5%, up from 5.2% in the previous quarter. A rise in costs in the manufacturing sector is reckoned by many observers to be behind the increase.
“Manufacturers are being hammered and have to lay people off as a result of their increased costs,” said City analyst Colin Perry. “It’s the simple but brutal law of profit margins being squeezed and workers being the casualties.
“There is also a big perceived issue around the number of migrants coming to Britain and reportedly undercutting pay rates by as much as half in some cases. Against this backdrop, unemployment will continue to get worse.”