London suffers as total of jobless rises sharply

TODAY'S unemployment figures were expected to show that 80,000 people started claiming benefit in the last month.

London was particularly badly hit with job losses in the high street and City.

The sharp rise, one of the worst monthly figures on record, put the number claiming jobseeker's allowance at well over a million. It was expected to take the overall people out of work over the two million mark. Analysts warn that the jobless total could soar to 3.4 million by 2011.

A snapshot of weakening confidence in the capital came when the London Chamber of Commerce and Industry found that only half of businesses are certain they will survive the downturn.

John Philpott, of the Chartered Institute of Personnel and Development, said today: "We are now in the dark days of the recession. In all probability by the end of the year, one in 10 people will be jobless."

He warned that falling inflation was also putting pressure on wages, adding: "If you are looking for a job, things are difficult. If you are in a job, you may be fearing that you will lose it.

"If you are in a job, don't look forward to a big pay rise this year."

The jobs figures were being released as a report was published claiming women will be hardest hit by the recession because more are in work and jobs are being lost across the economy rather than in male-dominated sectors.

The study by the TUC showed that more households depend on a woman's wage today than in previous economic downturns, while women earn more than men in a fifth of couples.