Britain’s White Collar Jobless Claims Rise 154% on Recession

June 12 (Bloomberg) -- Jobless claims from white-collar workers in the U.K. rose by 154 percent in the year through May as the recession led banks and other services companies to fire workers, particularly in London and the South East of England.

The number of managers and professionals claiming the Jobseekers’ Allowance increased to 118,700 from 46,700 a year earlier, the Local Government Association said in a report today.

“It’s the South that has seen a sharp rise in the number of managerial job losses,” said Jeremy Beecham, vice-chairman of the association, a lobbying group that represents the interest of local councils. “White-collar workers are by no means safe from job cuts, and increasing numbers of them are being forced onto Job Seekers’ Allowance.”

Britain’s economy is hemorrhaging workers in a recession predicted by Prime Minister Gordon Brown’s government to be the worst since World War II. Service industries account for 80 percent of all jobs in Britain, and in financial services 40 percent of workers are based in London and the South East.

The number of jobless based on International Labour Organization methods rose 244,000 in the three months through March, the biggest increase since 1981, government figures show. Economists say unemployment, currently 2.22 million, may continue to rise long after the recession has ended and peak above 3 million.

The number of manual and skilled trade workers seeking jobless benefits increased by 77 percent to 589,000, the Local Government Association said.