What rising unemployment means for loans and taxes

Unemployment in Britain is up, driven primarily by a reduction in the number of jobs in the economy (rather than a sudden increase in people looking for work).

- SEAN O'GRADY

At 5 per cent of the workforce, unemployment stands close to a post-pandemic high, though in historical terms it remains relatively modest - and way lower than in the 1980s and 1990s, and comparable to the benign Blair-Brown era (albeit the trend is in the wrong direction).

Over the past year, the economy has lost some 180,000 jobs – with 32,000 gone in October alone, indicating an accelerating trend. It is gloomy news just before the Budget, but there are also aspects that will be more encouraging for the chancellor.

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