Unemployment figures rise again

The number of people unemployed in the UK has increased again, according to figures released by the Office of National Statistics.

The figure currently stands at 2.67 million, an increase by 48,000 in the three-month period between October and December 2011. The unemployment rate stands at 8.4 per cent. There was also grim reading for the nation's young people, with the figure rising in the same period by 22,000 to 1.04 million.

In other words, 22.2 per cent of 16 to 24-year-olds are out of work.

While the unemployment rate is now at its highest since 1995, the number of job vacancies rose to 476,000 in the three months to January.

Vicky Redwood, economist at Capital Economics, said,

"We continue to expect unemployment to rise much further in response to the weakness in the wider economy. At least with inflation falling, the squeeze on real pay is easing. But it won't be for a few months yet until real pay actually starts to rise again."

The future is understandably bleak for some young people unless there are some drastic measures to stimulate the job market and create more opportunities.

Martina Milburn, chief executive of youth charity The Prince's Trust, said,

"Young people are facing the bleakest jobs market for decades, which is crushing self-esteem and derailing ambition. We need to act now to ensure an unemployed generation does not become an unemployable one. Through our new Job Ambassadors scheme, young people who have overcome long-term unemployment with help from the Trust will be helping 300,000 more into work. We're calling on businesses and individuals to help us grow the scheme so we can help tackle youth unemployment."

Earlier this week, Deputy Prime Minister Nick Clegg called on businesses to take on more young workers as part of the government's £1 billion youth contract programme.

The initiative asks British companies to take on more 18 to 24-year-olds in return for cash. Employers are expected to receive £2,275 for every unemployed young person they add to their systems.

Clegg said it was his top priority to get "young people earning or learning".

Young people were let down by the Lib Dem leader who made a u-turn on his pre-election pledge of opposing tuition fee rises back in 2010. Will he be able to regain some trust from the nation's youth?