Unemployment hits 17-year high but more people turn to self-employment
Posted by Natalie Brandweiner in Staff, Business trends on Wed, 18/01/2012 - 18:16
While today's unemployment figures showed the number of individuals out of work is at a 17-year high, they also revealed that the UK's self-employed community has increased by 101,000 people.
The Office for National Statistics said 118,000 people joined the jobless ranks in the three months to November, making a total of 2.68m and taking the overall rate to 8.4%, the highest since 1995.
Youth unemployment continued to increase from the previous quarter’s results with 22.3% of 16-24 year-olds out of work.
But the statistics also showed a change in working patterns with the number of self-employed people rising by 101,000 to 4.12m. In addition, those employees and self-employed individuals working part-time because they could not find a full-time job increased by 44,000 to reach 1.31m, the highest figure since 1992.
The total number of people in employment also saw a hike. It rose by 18,000 over the three months to 29.119m.
Speaking during Wednesday's Prime Minister’s Questions, David Cameron said: "If you look at the figures, it is noteworthy that while the increase in unemployment is hugely unwelcome there is still an increase in the number of people employed, another 18,000 people in work.
"Now what that shows is that we need more private sector employment. We need to move further and faster on that agenda."
But Liam Byrne, Labour’s shadow work and pensions secretary, told The Telegraph that Britain was facing an "unemployment emergency".
He said: "Unemployment has now soared to the highest level for a generation and long-term youth unemployment has more than doubled since January last year. In America, Germany and Japan unemployment is either flat or falling. This is new proof that the government must change course."
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