Newham overtook Hackney to become the borough with the worst rate of unemployment in the capital in July.
The Office for National Statistics shows the percentage of people claiming Job Seeker’s Allowance (JSA) rose from 7.2 per cent in June to 7.3 per cent.
In absolute terms, Newham is second only to Lambeth with 11,746 claimants.
Newham’s rise to the top of the unemployment table came as joblessness climbed for the eighth consecutive month, up by 268, or two per cent, on June.
On a year-on-year basis, the amount of JSA claimants increased by more than 1,500, or 15 per cent, on 10,175 in July 2010.
Newham continued to post the highest number of young jobless in the capital with 3,175 claimants, representing a rise of 225, or eight per cent, in June.
Year-on-year, youth unemployment surged by more than 600.
A spokesman from youth charity The Prince’s Trust said: “Too many young people are struggling to find a job, leaving them fearing that they’ll end up on the scrap heap.”
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