British banks urged to help stem rising unemployment

LONDON: In the face of rising unemployment, the British government has been urged to pressure banks to lend in order to stimulate business activities, following its second banking rescue plan announced on Monday.

"After this week's second bailout, the government must get banks lending again if the tide of rising unemployment is to be pushed back,"

said David Frost, director general of the British Chambers of Commerce.

The unemployment rate in Britain was 6.1 percent between September and November 2008, or 1.92 million people, the highest level since late 1997. The figure was up 0.4 percent or 131,000 people more than the previous three months, and up 0.9 percent or 290,000 higher than a year ago, according to the latest figures issued by the Office for National Statistics (ONS).

The European Commission has forecast that the unemployment rate in Britain will rise to 8.2 percent for 2009, against 5.7 percent for the whole 2008.

"Businesses are being increasingly forced against their will to let good staff go. Even with some staff accepting pay freezes and working fewer hours, it's clear that employers are facing serious financial pressures," said Frost.

Thursday, Xinhua