British unemployment rate jumps to 11-year high: official data

LONDON: Britain's unemployment rate jumped to an 11-year high point of 5.8 per cent in the three months to September, the highest level since 1997, official data showed on Wednesday.

Under the International Labour Organization (ILO) measure of unemployment, the rate had stood at 5.4 percent for the three months to June, the Office for National Statistics (ONS) said in a statement.

The number of people claiming jobless benefits in Britain surged in October by the biggest monthly amount for almost 16 years, the ONS added.

The claimant count rose by 36,500 from September to 980,900 people - which was the highest figure since 2001 and the biggest monthly increase since December 1992.

The count has now risen for nine months running as Britain faces the likely prospect this year of a recession - defined as two successive quarters of negative economic growth.

"The labour market is being hit ever harder by contracting economic activity, depressed business confidence and very tight credit conditions," said IHS Global Insight economist Howard Archer.

He added: "It is clear that the claimant count measure will move above one million in November, and we suspect it will reach two million in the first half of 2010."