The number of unemployed people in London has fallen by 1% between October and December, bucking the national trend, which saw unemployment figures soar across the country.

The jobless total in the capital is now 294,000, the data from the Office for National Statistics showed, down from 297,000.

Nationwide, unemployment has reached a 10-year high of just under two million as a record number of people were made redundant and job vacancies slumped to a new low.

The number of people claiming Jobseeker's Allowance in the UK has now increased for 12 months in a row, up by 73,800 in January to 1.23 million, the highest total since the summer of 1999.

Work and Pensions Secretary James Purnell said: "We know times are tough and we need to continue doing all we can to support people who lose their jobs find another as quickly as possible, preventing the long-term unemployment which has so scarred communities in the past from taking root.

"The Prime Minister and I are meeting key national employers today (Wednesday) to plan what more we can do to help people back to work and into apprenticeships, including advertising more vacancies through Jobcentre Plus.

"Businesses are already helping thousands of people into work through our local employment partnership scheme and today we will be committing to helping a further 200,000 more into jobs over the next year."

TUC general secretary Brendan Barber said: "This is another set of dreadful figures, and we fear worse is still to come. Losing your job doesn't just hit your pocket, but can hit self-esteem, affect relationships and harm your health.

"This is a national emergency, and Government must bend every sinew to stop job losses and get the jobless back to work.

"For those who have lost their jobs, better statutory redundancy pay and Jobseeker's Allowance is needed to help them to cope financially on their tragedy."