Many commentators had almost rejoiced at the fact that unemployment had not yet represented the general doom and gloom in the economy but the rise of 60,000 over the three month period to June shows that now it is catching up.That takes the figures to 5.4% and the biggest jump since 1992.Total unemployment now stands at 1.67m
The number of vacancies also fell in the period down 47,000 to 634,000,although the number of people in work has actually rise bu 20,000 in the same period
The Bank of England meanwhile have slashed its forecasts on growth in the economy.It is forecasting 0.1% increase in the first quarter of next year having previously put the figure at 1% and warns that inflation may hit 5% in the next few months
According to BBC online
Governor Mervyn King explained that the near-term outlook for inflation has "deteriorated since May", due to the fall in energy prices. But he stressed that there are still inflation risks from wage growth, forcing the Bank's monetary policy committee to continue treading a balancing line between the rising cost of living and falling economic growth.
"It may still just be summer but there is a feeling of chill in the economic air. The British economy is going through a difficult and painful adjustment due to higher energy and commodity prices and in banking, credit and housing markets. This adjustment to our economy cannot be avoided and as a result, inflation is rising and growth is slowing," King said.
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