The bail-out of Irish banks has given increased confidence in the Euro currency.
http://www.bbc.co.uk/news/business-11808577
How will this affect European businesses?
If the euro becomes stronger, this will make European exports more expensive to buy abroad. This will mean that it is more difficult for those businesses in Europe which count on exports, e.g. BMW.
Britain's youth unemployment rate is now at a record 19.8pc. Photo: Bloomberg
"This really is the feel-bad recovery," said Graeme Leach, chief economist at the Institute of Directors (IoD), responding to the news that those collecting Jobseeker's Allowance rose unexpectedly by 23,500 to 1.64m in January.
The increase, reported by the Office for National Statistics, reversed the falls in the number of benefit claimants over the previous two months, and shocked economists who had predicted a 10,000 fall
"Today's numbers support the IoD's view that the economy may experience a double-dip to the recession in the first half of 2010," said Mr Leach.
"Weak employment and unemployment statistics are compounded by falling real earnings with inflation well ahead of pay growth. Throw in a public sector recession in 2011 and we may even end up with a triple tumble recession."
Commentators also warned that the broader measure of unemployment was likely to start rising again later in the year, despite a 3,000 dip to 2.46m in the fourth quarter of 2009.
"While these figures are broadly welcome, they hide some worrying trends: full-time employment continues to fall; the number of people working part-time is at a record high; there was a large increase in those claiming benefits; and inactivity has risen further," said David Kern, chief economist at the British Chambers of Commerce.
The data suggested people are increasingly being forced to settle for part-time work because they are unable to secure a full-time position. When combining the number of so-called "underemployed" in Britain with those that are unemployed, the figure rises to about 5.3m.
"The record number of involuntary part-time workers shows that beneath the surface millions of people are under-employed. The recession will not be over for these people until they are back in secure jobs and working the hours they need to earn a decent living," said Brendan Barber, general secretary of the TUC.
The ONS data also reflected the trend among a growing proportion of people who are returning to education in a bid to sit the jobs downturn out while gaining more skills in the process.
Long-term unemployment – a damaging consequence of previous recessions – also rose between October and December, with the number of people out of work for more than 12 months up by 37,000 compared with the third quarter to 663,000.
Jim Knight, employment minister, said: "The large increase in unemployment we saw a year ago is now translating into higher numbers who are long-term unemployed. We responded to the recession by investing £5bn to get people into jobs, which the Tories opposed. Long-term unemployment today is nowhere near as high as when Labour came into office."
However Theresa May, the shadow work and pensions secretary, said Labour ministers were pursuing "a path that will undermine confidence... and put the recovery at risk."
