Unemployment levels continue to rise much to the dismay of Labour

The rate of unemployed people is now 8 per cent, the highest since 1994, the Office for National Statistics said.

Long-term unemployment, which counts those out of work for over a year, increased to 726,000 – the highest since Labour came to power in 1997.

Youth unemployment is also on the rise, with 929,000 16 to 24-year-olds out of work in the three month period between December and February.

Unemployment among the over-50s rose by 7,000 to 396,000.

However, the number of people claiming unemployment benefits fell by 32,900 to 1.54 million – a far higher fall than expected.

The Conservatives are using the figures as proof that Labour’s National Insurance rise would be a disaster for unemployment levels, Shadow work and pensions secretary Theresa May said: ‘This is a clear sign that the Government’s plans are not working. The Government is not giving enough support in terms of the welfare system as a whole. That is why we would dramatically reform it. I think all this shows that, at this time, the worst thing to do would be to impose a jobs tax, which is what Labour is proposing to do.’