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9% fall in house prices expected, sales to halve says Halifax
According to the official figures a significant number of people are claming unemployment benefits increased by 20,100 for month to 846,700, which is the biggest rise since Britain’s last slump in 1992.
In the last three months to June, the number of jobless people increased by 60,000 to 1.67 million, nearly the official unemployment rate rise by 0.2% to 5.4%.
Meanwhile, from the period of January to March approximately 126,000 people were surplus in the same period, up by 14,000.
George Buckley, an economist at Deutsche Bank, revealed that the labour market was falling harshly and he believes that this will continue due to sluggish economic growth.
According to the Liberal Democrat Treasury spokesman, Vince Cable, the figures are unsatisfactory and warned of a ’serious crash on jobs’ as the economy slows and possibly heads toward a depression.
Mr. Cable believes that the Government needs to take action to make sure those people who lost their jobs don’t lose their home as a result.
Figures reveal that repossessions are up by more than 40% at 19,000 this year, which is the highest level since the mid 1990s.
The news comes as Governor of the Bank of England, Mervyn King, said that the next year is going to be a complicated one, with high inflation and output broadly flat.
The Bank is not expecting the growth of UK economy at allover the next 12 months. Mr. King added that the British economy is going through under pressure and painful adjustment and has not lined out a depression.