The unemployment rate also rose to 8.4% from 8.3%, the highest since January 1996.
Meanwhile the number of people claiming Jobseeker's Allowance in December rose by 1,200 to 1.6m.
And the number of young people looking for work hit a new record of 1.043m, taking the rate for 16-24 year-olds to 22.3%.
The number of people in employment rose slightly in the three months to November by 18,000 to 29.119m.
Prime Minister David Cameron said the figures were not good news.
He said: “Any increase in unemployment is disappointing and obviously a tragedy for the person who becomes unemployed, that is why we are taking action to get people back to work.”
Cameron pointed to an increase in the number of people in work, to new private sector jobs and a small fall in the long-term unemployed.
John Pollock, group board director for Legal & General’s Risk businesses, said: “With the figure for the number of people unemployed standing at 2.68m and cuts in public and private sector, and with retail businesses closing almost daily, it does look as if more UK households will continue to struggle.
“So having a financial cushion in the form of some insurance cover, whether that is to help cover income or protect people's homes and their health, has never been more important.”
Pollcok said the help insurers provided to those people who had been able to secure some insurance cover could improve their chances of getting back into work and keep their homes.
He said: “This importantly means that it lifts the financial pressure on society and government, so they are able to focus funds on helping those who don't have cover in place. Working together should help us all to get through this worsening employment crisis.”
