Unemployment figures hit record high

Predictions that unemployment rates would fall in the New Year have been proven premature this week, as figures show that record numbers claimed unemployment benefits in January 2010.

Unemployment figures began to fall after the economy emerged from recession in the last three months of 2009. Economists had predicted that unemployment would drop a further 10,000 in January.

Instead, the number of people claiming jobseeker’s allowance unexpectedly rose by 23,500, bringing total claimant figures to over 1.6 million—the highest since April 1997.

The recession had a severe impact on graduate employment levels and news of the sudden drop will be a cause of concern for students due to graduate in May.

Speaking to The Journal, Leah Ganley of pressure group ‘Youth Fight For Jobs’ said: “We are seeing record increases in people applying to go to university because there are so few employment prospects at the moment. All normal avenues for employment are being closed off. For students about to graduate, it’s a very bleak situation.”

Ms Ganley continued: “Since 2008, £1.3 trillion has been spent by the British government in bailing out banks, providing guarantees for the financial sector and other fiscal stimulus measures. We need that sort of investment in creating jobs for skilled workers. It’s a question of priorities.”

Last year, graduate unemployment jumped from 5.5 to 7.9 percent, bringing the number of recent graduates who were out of work to a 12 year high.

Despite this, work and pensions secretary Yvette Cooper claimed that government policies had helped to keep unemployment figures lower than expected in a difficult economic climate.

Graduate unemployment at Heriot-Watt University saw an astonishingly sharp increase, with the number of students still seeking employment six months after graduating more than doubling to 8.3 percent.

The University of Edinburgh fared better than the national average, noting a two percent drop in graduate employment, with roughly six percent of first degree graduates unemployed.

Meanwhile, Edinburgh Napier University, one of the best universities in the country for graduate employability, reported just under 3 percent of recent graduates as unemployed.

Data collected by the University of Edinburgh suggests that the highest levels of involuntary unemployment occur in graduates of Divinity, History, Chemistry and Geosciences. However, of those employed, students of Biology and Biomedical Sciences are by far the most likely to be working in non-graduate level occupations. The most employable disciplines are Medicine, Law and Education.