UK unemployment level reaches 16-year-high in October

UK unemployment rose at the fastest pace in 16 years in October after companies from banks to builders cut jobs as the economy slid into its first recession since 1991.

The number of people receiving jobless benefits rose 36,500 to 980,900, the highest level since March 2001, the Office for National Statistics said yesterday in London.

Economists had expected a gain of 40,000.