Unemployment rises to 2.5 million

The number of people unemployed in the UK has increased by 53,000 to 2.5 million – the highest level since December 1994, according to figures released by the Office for National Statistics.

Despite the rise in the three months to March the rate of unemployment remains at 8% and the total number of people claiming unemployment benefit fell in April by 27,100 to 1.52 million - a sharper fall than expected.

However, youth unemployment continued rising with 941,000 16 to 24-year-olds out of work in the January to March period - a rise of 18,000 on the previous quarter.

"The big task for the government is trying to stimulate growth while also cutting the deficit. There's nothing to suggest we're going to get a return to anything approaching full employment anytime soon,” said John Philpott of the Chartered Institute of Personnel and Development.