Unemployment reaches 2.26million a 12 year high

Unemployment has risen to 2.26million to the highest figure since November 1996, with figures from the Office of National Statistics showing an increase in the jobless for the first quarter 2009 to 7.2%.Claimants rose by 39,300 in May to 1.54 million, less than the 60,000 increase expected by economists and marks the smallest rise in 10 months.

Stephen Gifford, chief economist at Grant Thornton. said: "Today's increase in unemployment to 2.26 million is a despairing but not surprising statistic...The number out of work is predicted to rise to around three million by the middle of 2010, so today's figures confirm that there is still a great deal of pain ahead, despite the signs that the economy may be stabilising."

Speaking for the recruitment industry governing body Kevin Green, chief executive at the REC, said: “The rise in unemployment is expected, but still troubling. The recruitment industry is committed to providing a route of out of unemployment through temporary, contracting or interim opportunities...It has therefore never been more important to ensure that the temporary jobs market is not adversely affected by the introduction of regulations, such as the Agency Workers Directive. This must be delayed until the last possible date in 2011.”