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Unemployment reaches two million mark

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18th March 2009

Unemployment has risen above two million for the first time since Labour was elected in 1997, according to the latest data.

Figures from the Office for National Statistics put the number of people unemployed at 2.03 million during the three months to January.

That was up 165,000 from the previous quarter, taking the unemployment rate to 6.5 per cent.

The job losses were focused on the private sector, where employment in December 2008 was down 13,000 from September.

In contrast, the number of people in public sector employment was 5.78 million in December 2008, up 15,000 from September 2008.

Employment in central government increased by 19,000, while in local government it decreased by 6,000.

The figures came as a leaked report from the International Monetary Fund suggested that Britain will take longer to recover from the recession than any other major economy.

And the UK will be the only major economy still shrinking next year, according to the report.

Reacting to the latest figures, employment minister Tony McNulty said they "show the human impact of the global recession".

"No matter how hard times get, we will not give up on anyone who loses their job and will continue to provide real help to everyone who needs it," he said.

Shadow work and pensions secretary Theresa May said: "This is a grim milestone that no one wanted to reach.

"James Purnell and Labour are sleepwalking their way through this unemployment crisis casting people adrift as they continue to close job centres."

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