Official figures show that the number of Britons claiming unemployment benefit rose for a seventh consecutive month in August. The rise was also the biggest since December 1992.
The Office for National Statistics also said the number of people in work in the three months to July fell for the first time since the beginning of 2007, in a further sign that the economic slowdown is hurting the job market.
The claimant count leapt by 32,500 in August, far more than forecast, and July's figure was also revised up by more than 7,000.
Average earnings growth including bonuses ticked higher to 3.5% in the three months to July from 3.4% in the three months to June. Still, earnings growth remained subdued and well below the rate of inflation.
