140,000 in the east midlands could be unemployed by Christmas

Ahead of the latest unemployment figures published later this morning, the TUC is today (Wednesday) warning that 140,000 people in the east midlands could be unemployed by Christmas.

As well as rising unemployment, the long-term unemployment rate – those out of work for at least 12 months – is increasing at an even faster rate. In the three months up to September, long-term unemployment in the east midlands stood at 28,556. The TUC predicts this will rise even further by Christmas.

Across the UK, unemployment – as defined by the International Labour Organisation (ILO) – is expected to rise to around 1.9 million in the three months up to October. The TUC predicts that the unemployment rate will hit six per cent for the first time since June-August 1999 and that two million people will be unemployed by Christmas.

The TUC believes these stark unemployment figures mean that as well as taking all possible steps to boost the economy, the Government must provide further support for those already out of work.

While the TUC supports moves to encourage people back into work, the Government must also help people cope with the immediate financial pressures of unemployment. This means moving away from ‘anti-scrounger’ rhetoric and towards the reality of widespread unemployment, says the TUC.

The TUC wants the Government to fulfil its 2005 manifesto commitment to review the limit at which statutory redundancy pay is calculated, which the TUC proposes increasing from £330 to £500 a week. The tax free limit on redundancy pay should be increased from £30,000 to £50,000.

The TUC also wants to see Job Seekers Allowance (JSA) increased from £60.50 to £75 a week, bringing it back into line with its value in 1997.

TUC Regional Secretary Roger McKenzie said: “140,000 people in the east midlands are set for a very grim Christmas this year, many of whom will have also spent last Christmas on the dole.

“These people are not scroungers. They are blameless victims of a worldwide economic downturn and deserve to be treated as such. As well as more support to get back into work, unemployed people need more immediate financial support to help them cope with life on the dole.

“Many people losing their jobs for the first time will be shocked to find that JSA is less than £10 a day. This is barely enough to pay the bills and feed their families, let alone pay for Christmas.

“The TUC has always opposed those who believe that all people on benefits are scroungers but today’s figures show that policies based on this rhetoric could pour further misery on to millions of people.”

NOTES TO EDITORS:

- The International Labour Organisation (ILO) defines unemployed people as those who are without a job and want one, have actively sought a job in the last four weeks and are able to start a new job in the next two weeks, or have found a job and are waiting to start in the next two weeks.
- Since the last recession, the unemployment rate declined from 10.7 per cent in December 1992 - February 1993 to 4.7 per cent in June - August 2004. The unemployment rate has been below six per cent in June - August 1999.
- All TUC press releases can be found at www.tuc.org.uk