Unemployment in the UK has increased by 210,000 to reach 2.47m - the highest level in 14 years - according to the Office for National Statistics.

According to official figures the jobless rate now stands at 7.9% and claims for unemployment benefit in August grew by 24,400 from July to reach 1.6m, the highest figure since May 1997.

The number of 16 to 24-year-olds out of work rose from 928,000 to 947,000, meaning that the jobless rate in this age group is at a record 19% - the highest rate since records began.

There had been signs that the economy was starting to recover, with business confidence increasing and manufacturing output rising.