Catherwood LibraryILR School

The British unemployment rate shot up to 5.7% this August, the largest increase since July of 1991. Unfortunately the worst is far from over ? it is predicted that the economy will continue to contract into 2009, leading to much more severe unemployment problems. David Blanchflower, at the Bank of England, said that the numbers were worse even than he had feared, and says that unemployment could pass the 2 million mark by Christmas. Because of the credit and housing crises, construction companies and banks have led the cutbacks but unemployment is rising across the boards. Prime Minister Gordon Brown, while recognizing that the UK is headed into tough times, points out that unemployment is still higher France, Germany, Italy and the US.