Fears fade of UK unemployment hitting 3m Unemployment may still have further to rise this year as a result of slow economic growth, though fears of the total topping 3m are fading, according to analysts. Economists expect this week's data to show the jobless rate stable at 8.4 per cent of the workforce, or about 2.7m, in the three months to February, according to a Reuters poll. If that forecast is borne out, it would be the third month in which unemployment has been flat. Many economists expect the rate to rise to 8.7 or 8.8 per cent by the end of the year, or up to 2.9m, though Goldman Sachs has suggested it could level off at 8.5 per cent in the summer. The past few weeks have brought mixed news on jobs. Last week British Airways, part of International Airlines Group, said as many as 1,200 could go following its takeover of BMI, while Mothercare said it would close 111 stores during the next three years, costing 730 jobs. Against that, Offshore Group Newcastle, an engineering company, said it would create up to 1,000 jobs after receiving a £640,000 government grant to build foundations for offshore wind farms. Nissan announced that it would hire 225 workers to build a medium-sized hatchback at its Sunderland plant, generating another 900 posts at component suppliers. The resurgent carmaking industry, with several plants that build premium-sector cars and export beyond western Europe, particularly to emerging economies, has been one of the labour market's brightest spots. Nissan's move takes the number of jobs it has generated in Britain this year to more than 3,000 after it announced plans last month to build a new compact car in Sunderland, creating 400 direct jobs and 1,600 at suppliers. Honda, Toyota and Jaguar Land Rover have also added UK jobs. The retail industry remains a problem area, with 2,100 jobs lost at Game Group, the video games retailer, when it collapsed into administration. That followed the loss of 3,100 jobs at Peacocks, the value fashion store. But even in retail, it is not all bad news. Sandwich chain Pret A Manger announced plans to add 550 jobs this year on the back of strong revenue and earnings growth. A survey of 400 consultancies by the Recruitment and Employment Confederation and KPMG, the professional services firm, found that vacancies across the economy had risen in March at their fastest for eight months. Permanent appointments were up for the third month running, albeit at a slower pace than in February. But temporary hirings showed their biggest drop for more than two-and-a-half years, which may have reflected employer uncertainty about the new agency workers regulations, giving temps equal pay with permanent staff after 12 weeks. If unemployment continues to rise, it will be because the economy is not growing fast enough to absorb both the increase in the workforce and job losses in the public sector. Howard Archer, an economist at IHS Global Insight, said: "While recent increases in unemployment have been significantly reduced overall, we suspect that unemployment is still headed higher for some months to come as economic activity remains limited overall, business confidence is fragile and public sector jobs are pared." He expected unemployment to peak close to 2.85m, or 8.8 per cent, in late 2012 or early 2013. The Office for Budget Responsibility expects 8.7 per cent at the end of this year followed by a fall to 6.3 per cent by 2016.