While the jobless rate among OECD nations may have remained static in April, TUC figures indicate that dole claimants in the UK now outnumber job vacancies by five to one, with London, the North East and Scotland worst hit.
Statistics released by the Organisation for Economic Cooperation and Development, which includes mostly developed nations, revealed that unemployment among member states held steady for the second month running at 8.7% in April – the equivalent of about 46.5 million people.
The picture was not so rosy among the 16 Eurozone countries, however, where jobless totals hit a 12-year high of 10.1%. This compares with UK unemployment rates of about 8%.
But despite the apparently positive comparison, union umbrella group the TUC indicated that the number of claimants for Jobseekers Allowance (JSA) increased among half of all local authority areas between April 2009 and 2010. The number of vacancies advertised in JobcentrePlus facilities also fell in almost 50 council regions over the last 12 months despite signs of a tentative economic recovery.
As a result, TUC general secretary Brendan Barber called on the coalition government to put tackling unemployment at the top of its priority list and not to put economic recovery at risk by introducing deep spending cuts that could push the country back into recession.
“Our chances of economic recovery are blighted by unemployment black spots around the country, where dole claimants outnumber jobs by 5 to 1. Unless they are able to get back to work, the benefits bill and the deficit will continue to rise,” he said.
The government had already failed in its fairness pledge by focusing spending cuts on the poorest areas, which needed investment to ensure local business could flourish and create employment, he added.
According to TUC figures, London was the worst hit area, with almost eight JSA claimants being available for every post. Seven of the top ten unemployment black spots were located in the capital, with Hackney being the worst affected. Here the number of claimants outnumbered vacancies by a shocking 24:1.
Beyond London, however, there was clear evidence of a north-south divide. Scotland, the North East, Yorkshire and Humberside all had six claimants available for every job advertised compared to four in the south.