London’s dole queues have started to grow again following the summer jobs boom fuelled by the Olympics.
The number of people signing on for Jobseeker’s Allowance in the capital jumped by almost 3,000 last month.
About 100,000 jobs were generated by the Olympics and Paralympics, leading to much bigger than expected falls in national unemployment over the summer.
Today’s figures suggest that thousands have been forced to go back onto benefits as work comes to an end. The Paralympic closing ceremony was in early September.
The Office for National Statistics said the national unemployment tally fell again by 49,000 between July and September to 2.51 million, its lowest level for 13 months. The number of people in work rose by 100,000 to 29.58 million.
Unemployment among 16 to 24-year-olds fell by 49,000 — the same as the total fall in today’s jobless figures.
Employment minister Mark Hoban said: “The fall in youth unemployment is particularly welcome, although we’re not complacent about the scale of the challenge still facing us.”
However, the more up-to-date October total for Jobseeker’s Allowance claimants painted a less upbeat picture with a surprise rise of 10,100 — the biggest increase for 13 months — of which about a third was in London.
TUC general secretary Brendan Barber said: “Tougher times may still be ahead if our economy starts to slow again in the autumn quarter.”
The figures also showed that part-time employment increased by 49,000 to 8.1 million, close to a record high, and there were 51,000 more people in full-time jobs, at 21.4 million.
Average earnings increased by 1.8 per cent in the year to August, up by 0.1 per cent on the previous month, giving average weekly pay of £471, including bonuses.
Neil Carberry, the CBI’s director for employment and skills, said: “It’s encouraging that people are continuing to find jobs and that the unemployment rate is falling, but progress on getting people into work is much slower than we saw earlier in the year.”
