THE number of people out of work in Bolton has risen for the fourth month in a row.

Last month 8,236 people claimed benefit, compared with 8,094 in July.

In Greater Manchester, the number of people claiming Job Seekers Allowance rose by 2,240 — with 1,370 more people aged 18 to 24 looking for work in August.

Nationally, the number of people out of work has topped 2.5 million for only the second time since 1994, as unemployment rose by 80,000.

The number of unemployed 18 to 24-year-olds surged by 77,000 to 769,000.

Business leaders warned the private sector was struggling to keep pace with the demand for jobs.

Dr Brian Sloan, head of business and economic policy at Greater Manchester Chamber of Commerce, said: “Growth in the economy has been weak and this is reflected in the continued upward movement in unemployment nationally by 80,000.

“Our latest Quarterly Economic Survey is indicating there are private sector jobs being created but this is struggling to keep pace with demand, particularly from young people leaving full-time education this summer. “Our young people across the region have made a disproportionate contribution to the claimant count rise.

“With youth unemployment continuing to rise, it is important Government makes good use of resources to create jobs and training opportunities.”

He urged out of work young people to take advantage of the 300 apprenticeships on offer from the Chamber. employment Minister Chris Grayling said the Government was taking steps to encourage growth and tackle unemployment.

He added: “Clearly we must continue to focus our efforts on supporting business growth and ensure people who do lose their jobs have the best possible support to get back into employment.”

The rise was criticised by union chiefs, who blamed the Government’s spending cuts for worsening the jobs market and recovery.

Paul Kenny, GMB General Secretary said: “These figures confirm the recovery that was under way from the banker’s recession has stalled as a direct result of slamming on the spending brakes.

“Osborne, Cameron, Clegg and Cable are responsible for hundreds of thousands of workers now being without jobs.”