Official figures show that British unemployment increased by 21,000 in the three months fo February, while earnings growth is running at its highest level for three years.
The number of people out of work in the three months to February was 1.69 million, the worst figure since last autumn and up by 120,000 over the year.
The claimant count, which covers only people on jobseeker's allowance, fell by 9,200 last month to 910,800, the lowest total since the end of 2005. The count has now fallen for six months in a row and for eight out of the last nine months.
Average earnings increased by 4.6% in the year to February, up by 0.4 points on the previous month and the highest figure since March 2004. The Office for National Statistics said the new figure was fuelled by stronger growth in bonuses in private sectors such as finance.
Other data showed that the number of people in work fell by 47,000 in the three months to February to 28.9 million, only the second fall in 15 months. The number of jobs in manufacturing firms continued to be lost, down by 54,000 to 2.97 million in the latest quarter compared with a year ago, the lowest total since records began in 1978.