Official figures show that Britain's unemployment rate jumped to an eight-year high of 5.7% in the three months to August. The rate had stood at 5.2% in the three months to May.
The numbers unemployed increased by 164,000 to 1.79 million, the worst level since 1999.
The quarterly increase in the number of people out of work, including those not eligible for benefit, was the highest since the summer of 1991, when it jumped by 186,000.
The number of people claiming Jobseeker's Allowance increased by 31,800 in September to 939,900, the eighth consecutive monthly rise and the highest figure for almost two years. The total has now risen by 104,900 over the past year.
Employment levels have also slumped - down by 122,000 in the latest quarter to 29.4 million, the biggest three-monthly fall since 1993.
Average earnings increased by 3.4% in the year to August, down by 0.1 points on the previous month.