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The number of people claiming unemployment benefits rose last month by 23,500 compared to December, according to official figures.

The data defies widely held expectations in a drop in the number of people out of work.
     
John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development, says: ‘Today’s employment and unemployment figures confirm that the UK jobs market is still in an extremely fragile state. With a weak economic recovery set to result in further job losses in the coming months it is highly likely that the unemployment situation will get worse before it starts to get significantly better.’

However, on a separate measure of joblessness, the overall rate of unemployment remained almost static between October and December at around 2.46 million.

David Kern, chief economist at the British Chambers of Commerce, says: ‘The forthcoming Budget provides the government with a perfect opportunity to introduce measures that will support businesses’ ability to increase employment – with particular emphasis on full-time jobs. It should start by scrapping the hike in employer National Insurance Contributions, planned for next year, and substitute it for a 1 per cent rise in VAT.’

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