Jobs are being lost in the manufacturing industry at their fastest rate - 1 per cent in the three months to October - since the last recession back in December 1993.
Despite this rise in unemployment figures, the Office of National Statistics said the number of people in work reached a record level of 27.2 million for the same period.
These figures reflect the trends in British industry, highlighting the losses faced in manufacturing industries and the number of jobs being created in the service sector.
However, City economists expect unemployment to get worse in the coming months and believe that even the service sector will slow down.
This is due to the time it takes for a fall in consumer demand to filter through to the businesses affected.
1 Brindleyplace, Birmingham, and Cambridge: Telecommunications company Ionica is to cut another 400 jobs from its two sites after previously axing 600 jobs.
2 Bishopton, Glasgow: British Aerospace has announced plans to close its Royal Ordnance plant in the city by the end of 2000 with the loss of 284 jobs after losing an MoD contract.
3 York: Card Protection Plan, a credit card security company, announced that it would create 750 jobs with a new call centre over the next five years.
4 Preston, Lancashire: Experian UK announced 450 new jobs at a new telephone call centre for companies from the financial, retail and utility sectors.Reuse content