UK unemployment rises to highest level since 1995

The number of unemployed people increased by 220,000 over Q2 to reach 2.43 million, its highest level since 1995, according to the Office for National Statistics.

The unemployment rate was 7.8% for the three months to June 2009, up 0.7% over the previous quarter and 2.4% over the year.

Vacancy levels have also fallen while the number of unemployed people, the unemployment rate and the claimant count have all increased.

Growth in average earnings, excluding bonuses, has fallen but earnings growth including bonuses has increased.

The employment rate for people of working age was 72.7% for the three months to June 2009, down 0.9% from the previous quarter and 2% lower over the year.

Meanwhile, the total number of people in employment for the three months to June 2009 was 28.93 million, down 271,000 over the quarter and down 573,000 over the year.

Average earnings, both including and excluding bonuses, increased by 2.5% in the three months to June 2009 compared with the previous year.

The annual growth rate, excluding bonuses, is the lowest since comparable records began in 2001.