London: Embattled prime minister Gordon Brown's Labour government ran into some more headwind with the UK government's Office for National Statistics (ONS) saying that unemployment in the country rose at the fastest pace in 16 years in October. This is the ninth straight month of rising unemployment and the country is now poised on the brink of its first recession since 1991. According to ONS data, claims for unemployment benefits rose 36,500 to 980,900, the highest level since March 2001. With Virgin Media Inc, Taylor Wimpey Plc, GlaxoSmithKline Plc and other companies announcing more than 5,000 jobs cuts only yesterday, there is now pressure on Brown to lower taxes and increase spending. Gordon Brown has gained some popular support after battling hard to limit the damage caused by the worst financial crisis in almost a century. His early moves to support cash-strapped banks was immediately picked up as a model elsewhere in Europe and in the US. Last week, the Bank of England slashed benchmark interest rate to 3 per cent, the lowest since 1955. Meanwhile, Governor Mervyn King will address a press conference in London today and economists expect him to signal more monetary easing, even as he provides projections for growth and inflation. According to ONS data, unemployment was up for a ninth straight month in October and at 3 per cent was at its highest since October 2006. Figures for September were also revised upwards to 36,300 from 31,800. Unemployment total was up 140,000 in the quarter through September to 1.83 million, the highest since 1997. The growth rate of 5.8 per cent is the highest since 2000. This compares with 7.5 per cent in the euro region, 6.5 per cent in the US and 4.2 per cent in Japan, the ONS said.
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