Unemployment rises to 2.49m

The number of people unemployed in the UK has risen by 21,000 to reach 2.49m, according to figures released by the Office for National Statistics (ONS).

The unemployment rate in the UK now stands at 7.9%, although the increase between August and October is the smallest rise in the jobless total since March to May in 2008.

The number of people claiming unemployment benefit fell by 6,300 in November to 1.63m, the first fall since February 2008. However, the number of 16-to-24 year olds who are unemployed rose to 952,000, the highest figure since records began.

"Thanks to business, which has made Herculean efforts to keep and train their staff during the worst recession in decades, these unemployment figures are lower than expected. It's now time for the public sector to step up by ensuring that its pay settlements reflect conditions in the real world," said David Frost, director general of the British Chambers of Commerce.