Smaller increase in jobless total

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The number of people claiming jobseeker's allowance rose by 20,800 in September from a revised August figure to 1.63 million, according to the Office for National Statistics (ONS). This is the lowest increase since May last year.

Despite fears of rising youth unemployment, the number of young people looking for a job reduced fractionally in the quarter to August, to 946,000.

The previous three-monthly figure to July, of 947,000, was the highest since ONS records began in 1992.

Work and Pensions Secretary Yvette Cooper said: "These figures show families across the country are still being affected by the global recession.

"Although unemployment isn't as high today as many feared it would be at the time of the Budget, it remains a serious problem, which is why we must keep increasing support and advice to get people back into jobs. We will not leave them on their own."

Ministers announced that as part of the Government's support for young people, 5,000 new jobs will be created under the Future Jobs Fund, taking the total to almost 60,000. Young people in Barnsley, London and Hove have already started work through the fund in a range of different sectors, the Government said.

Employment Minister Jim Knight said: "I am pleased to announce another 5,000 jobs, created through the Future Jobs Fund, taking the total to almost 60,000 so far.

"These jobs are just one of the ways the Government's extra investment is helping people to get back into work. Our £5 billion injection to support jobseekers is helping people at every stage. Whilst 70% of people still leave jobseeker's allowance within six months, those who remain unemployed for longer get extra help through the new six-month package, local employment partnerships and the Future Jobs Fund."

Paul Kenny, general secretary of the GMB union said: "Bad as these figures are, there are some tentative signs of a very fragile recovery in the economy, which is due in no small part to the monetary policy being followed by the Bank of England and the fiscal policies of the Treasury."