UK unemployment rises to 2.67m

According to figures from the Office for National Statistics there were 2.67 million unemployed people, up 28,000 on the quarter.

The unemployment rate has not been higher since 1995.

The employment rate for those aged from 16 to 64 was 70.3%, unchanged on the quarter.

Yakub Zolynski, director of recruitment consultancy Market Mavens, said: “The number of unemployed has risen, but so too, paradoxically, has confidence among business owners.

"Optimism among employers is by no means strong, but it is starting to return.

"Over the past month or so, more companies have committed to taking on senior staff, which bodes well for employment numbers moving forward.

"When companies employ senior staff, they are often doing so because they intend to upsize and employ more junior staff next.

“Hopefully this will translate into more jobs for the young, who are currently in an impossible position.

"The economy is still in a difficult place but there has been a marked improvement in the mindset of company directors.

"A raft of more upbeat economic data in recent weeks is creating a sense of quiet optimism amongst UK businesses.

"Over the past month or two, the economy has switched from red to amber. That's giving company directors more confidence and confidence means jobs."

David Birne, an insolvency specialist at the accountants HW Fisher & Company, commented: "That the unemployment rate has slowed is of zero solace to the 28,000 people who joined the dole queue in January.

"Those seeking silver linings will seize on the fact that the rate of increase is slowing markedly.

"But any suggestion that unemployment is peaking sounds optimistic at best and complacent at worst.

"It is encouraging that 9000 new jobs were created, but the simple fact is that the private sector cannot create enough jobs to absorb those being shed by the public sector.”