UK Unemployment reducing slower than Forecast

The National Office for Statistics revealed that claims for jobless benefits had fallen 1,200 from the last month, although the forecast in March was exceeded by 600 claims showing signs of a weakening labour market.

The claims this month are suggesting signs of the first increase in 17 months.

Following the global credit squeeze and the threat of the housing market looming large, the economy is spiraling into a depression and so a weakening job market is only to be expected.

Today’s labour report shows how with increase claim rates, the reasons for the BoE to further drop interest rates are growing.

One prime example of this is the fate of JJB Sports Plc, the country’s second biggest sports retailer who announced the closure 72 stores in order to save their bottom line.

In the meantime the square mile is looking at job losses in excess of 20,00 jobs as the credit crunch forced investments bank and the financial sector to cut back, with predictions focusing on 2012 at the earliest for a recovery. Recession Risk

Ironically the Chancellor of the Exchequer Alistair Darling said that he was counting on a buoyant labor market in order to facilitate an increase consumer spending to avoid recession.

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