Unemployment rises by 80,000
By Ian Dunt Follow @IanDunt
There was more gloomy news for the UK economy today, as figures showed unemployment up by 80,000 in the three months to July.
The total rate now stands at 2.51 million people unemployed, or 7.9%.
There were 1.58 million people claiming Jobseeker's Allowance in August – up 20,300 on July.
Government hopes that the private sector could pick up the slack seemed fatally misguided, with only one job created for every 2.7 lost in the public sector.
Youth unemployment became even worse, rising by 78,000 to 973,000.
Average earnings increased by 2.8 per cent in the year to July, 0.1 per cent up on the previous month.
The depressing statistics will increase pressure on the government to provide a plan for growth in the economy.
In a speech later today, Nick Clegg will admit that capital infrastructure projects need to be sped up to create demand and employment, although Labour is likely to argue that the move does not go far enough.
Labour, trade unions and some economists argue that by drastically cutting spending in the public sector the government is preventing demand in the economy, just when international markets become more and more volatile.
