Unemployment rises to 2.5 million

There were more signs that the road to recovery is going to have many ups and downs as unemployment climbed in the three months December to February to 2.5 million or 8% of the population. Despite woeful figures for youth unemployment, there was a silver lining for the government with the number of people claiming unemployment benefit falling in March by 32,900 to 1.54 million. Also the average weekly earnings including bonuses were up 2.3 % compared to the year before in the three months.

This is a big week for economic data as inflation climbed to 3.4% yesterday and the first estimate of growth figures for the first three months of 2010 is released on Friday. Labour will be hoping for some good news as the election draws near, but any bad news could help out Labour by using the argument that now is not the time to start cutting public services with the economy in such a fragile status. The Conservatives are saying that today's unemployment figures mean that Labour's tactics are not working and that change is necessary at the top of government.