Unemployment may double next year

The number claiming benefit could rise from 58,000 to 162,000, if economy shrinks 1%.

THE NUMBER of people claiming unemployment benefit could rise from 58,000 to 162,000 next year

UNEDIC, the Union Nationale pour l'Emploi dans l'Industrie et le Commerce has put forward three scenarios for unemployment based on economic growth.

Its worst scenario, if the economy shrinks by 1%, produces the 162,000 figure.

Current government figures prepare for a rise of 15,000 people claiming benefits based on a 0.9% growth in the economy - a vision critics believe is overly optimistic.

Unedic's most postitive scenario, where the economy grows by 0.2%, predicts those claiming the benefit will rise to 58,000.

This figure rises to 74,000 if the economy remains stagnant at 0% growth.

Photo:Alexander Radev