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.

"Unless banks start behaving more responsibly by unblocking credit markets, cash-flow will continue to be a major issue for UK firms," he pointed out.

In a global picture, Britain enjoys a better employment situation. The country continues to have one of the highest employment rates in the world. Among G7 countries, Britain ranks 2nd place after Canada in its employment rate. It is also one of the top four in the EU.

The latest ONS figures also show that there were 530,000 job vacancies in the three months to December 2008, though the figure was down 69,000 over the previous quarter, and down 153,000 over the year. This is the lowest figure since comparable records began in 2001.

Despite unprecedented global economic challenges causing Britain's unemployment to rise, the government is helping people with real support to get back into work as quickly as possible, the Department for Work and Pensions said.

"The government is doing all it can to ensure economic stability for businesses, homeowners and jobseekers," said Employment Minister Tony McNulty, adding that figures have shown that "whilst more people are claiming jobseekers allowance, 231,000 have come off in the last month as people take advantage of the extra help on offer."