Unemployment in the UK declined slightly to 2.46 million for the three months to December, according to data released by the Office for National Statistics.

This is a fall of 3,000 from the previous quarter’s figures and is the second consecutive month that unemployment has fallen.

However, the rate of unemployment was unchanged at 7.8%, and the number of people claiming Jobseeker's Allowance rose by 23,500 to 1.64 million in January, meaning this is now at the highest level since 1997

The number of people out of work for more than a year also rose, by 37,000 between October and December to 663,000, also the highest figure since 1997.

“Today's announcement that unemployment in the UK is holding steady at 7.8% is good news - but the recovery is still fragile and policy-makers should not read too much into it. Workers willingness to work part-time and pay restraint combined with the monetary and fiscal stimulus have helped to cushion the impact of this recession on jobs, but growth is still weak and could be hit by the troubles in the Eurozone,” said economist Michael Green.