The number of unemployed has increased by 60,000 to 1.67 million, the worst for over a year.

Total unemployment, including people not eligible for benefit, is now 15,000 higher than a year ago.

The claimant count increased by 20,100 in July to 864,700, the sixth consecutive monthly rise and the highest total since May of last year.

July saw the biggest monthly increase since December 1992, and the number of people claiming Jobseeker's Allowance is now 10,900 higher than a year ago.

Manufacturing jobs continued to be lost, down by 37,000 in the latest quarter to a record low of 2.88 million.

Vacancies were also down, by 47,000 in the three months to July to 634,900.

Despite the rise in the jobless figures, the number of people in work rose by 20,000 between April and June to 29.56 million, the second highest on record.

The figure was swelled by a big rise in the number of post-retirement people in work.

The number of women aged over 60 and men over 65 in work increased by 25,000 to reach a record 1.3 million, according to data from the Office for National Statistics.

There was better news for the Government on the wages front, with new figures showing that average earnings growth fell back by 0.4 per cent in the year to June to 3.4 per cent.

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