Jobless total soars by nearly 250,000

Unemployment soared by almost 250,000 in the first three months of the year – the biggest rise since 1981 – leaving the jobless total at more than 2.2 million, shock figures reveal today.

The West Midlands is the worst hit area of the country, with 246,000 people out of work and the highest regional unemployment rate in the UK at 9.3 per cent – way above the national average of 7.1 per cent. Across the Black Country, more than 44,700 people are now claiming Jobseeker's Allowance – up 1,400 on the previous month.

Nationwide the number of people claiming Jobseeker's Allowance increased by 57,100 last month to 1,513,000.

Both sides of industry urged the Government to do more to tackle the jobs crisis after the figures showed the UK's unemployment total was now 2,215,000, the highest since 1996.

Insurance giant Legal & General added to the gloom by unveiling plans to axe up to 560 jobs.

In Wolverhampton, the number of people claiming Jobseeker's Allowance rose by 364 last month to 11,000, or 7.7 per cent and in Dudley it rose 394 to 10,365, or 5.6 per cent.

In Sandwell it was up 296 to 12,607, or 7.2 per cent, while in Walsall it was up by 340 to 10,739, or 7.1 per cent. In Kidderminster and Wyre Forest the number of claimants rose by 24, to 2,610, or 4.4 per cent. In Stafford there was a jump of 145 to 2,452, or 3.2 per cent, while in South Staffordshire it rose 72 to 2,216, or 3.5 per cent. In Cannock it was up by 147 to 3,425, or 5.8 per cent and in Lichfield it was up 28, giving a total of 2,152 and a rate of 3.7 per cent.

Peter Mathews, president of Black Country Chamber of Commerce, said: "The rise in unemployment highlights the urgent need for targeted support to help employers maintain key skills, particularly in manufacturing. We know businesses do not want to lose key employees but they are still struggling with cash-flow."