Osborne warns economic contraction will lead to unemployment

New figures show the UK economy contracted by 2.4% in the first quarter of 2009, its biggest quarterly decline in over 50 years.

Data from the Office for National Statistics reveals the contraction, the sharpest since the second quarter of 1958, was primarily caused by plummeting output in the construction and manufacturing sectors.

George Osborne, the Shadow Chancellor, said the figures “tell us something about the past and the future”.

He stressed, "We hope the recovery comes as soon as possible but sadly we now know this recession has been longer and deeper than we had thought.”

George warned, "This also means that in the future unemployment will be higher and Labour's debt crisis will be even worse."