TUC fears youth unemployment could hit record high

The TUC fears that the unemployment figures published today (Wednesday) could confirm that youth unemployment is at its highest level since records began and get ever closer to one million.


The TUC will also paying close attention to the latest earnings figures. In January, wages were trailing inflation by 2.9 per cent and with inflation hitting 5.5 per cent in February, the earnings gap could rise to over three percentage points for the first time since June 2010.
The rising earnings gap, combined with tax credit changes and deep spending cuts, is causing real pain in our so-called economic recovery, the TUC warns.
Midlands TUC Regional Secretary Cheryl Pidgeon said: “The country could be passing another grim milestone with youth unemployment hitting another record high.
“The government’s decision to scrap the Future Jobs Fund, months before its poorly funded replacement is due to start, has helped drive the rise in the number of young people out of work.
“Scrapping Education Maintenance Allowance and hiking university tuition fees will only further reduce the job chances of young people, and with inflation rising at over twice the level of earnings, things aren’t looking pretty for those in work either.
“From the VAT rise and tax credit changes to growth stunting spending cuts, the Chancellor has a direct hand in rising joblessness and falling household incomes.
“The economic facts are clear – unemployment is up and household debt is set to rise, while growth forecasts are down. The government must change course before it causes even more damage.”