The number of people unemployed in the UK increased by 21,000 between August and October to 2.49m, the highest figure since the three months to March 1995.

However, this was the smallest quarterly increase in the jobless total since March-May 2008, according to figures from the Office for National Statistics (ONS). The unemployment rate for the quarter stands at 7.9%.

The number of people claiming Jobseeker’s Allowance in November, however, showed the first monthly fall since February 2008. Total claimants decreased by 6,300 on the month to reach 1.63m.

The number of people unemployed for up to six months also fell by 98,000 on the quarter to reach 1.31m. But those unemployed for more than 12 months increased by 49,000 over the quarter to reach 620,000, the highest figure since the three months to November 1997.

As reported yesterday on recruiter.co.uk (‘Unemployment and inactivity increases the most for younger people’), the unemployment rate for 18-24-year-olds increased by 0.9 percentage points on the quarter to reach 18.4%, the highest figure since records for this metric began in 1992.

Samantha Weston, head of resourcing at consultancy firm Grant Thornton, says: “Today’s figures show that it is crucial for the government to remain focused on getting young people back into the workplace. It remains to be seen whether the measures announced last week in the pre-Budget report will go far enough to turn back the tide of youth unemployment.

“The government’s announcement to halve the length of time the under 25s have to spend on jobseekers allowance before being offered a job or training is a welcome move. Training schemes help to equip young people with the necessary skills to prosper in their future careers.”

The company has been running its own school leavers scheme for several years and has more than doubled the capacity this year from 12 to 30.

Chief executive of the Recruitment and Employment Confederation, Kevin Green, says: “The latest figures confirm that life is returning to the UK jobs market and is consistent with the REC’s Report on Jobswhich shows demand for staff at its highest level for two years.

“Despite this more positive picture, the reality is that unemployment will continue to edge upwards well into next year which is why we need a real focus on helping those out of work — in particular, the million-plus young jobseekers.

“Looking ahead, we call on the government to ensure that forthcoming employment regulation, increased National Insurance contributions for employers and public expenditure cuts do not hinder the fragile recovery of the UK labour market.”

David Frost, director general of the British Chambers of Commerce (BCC), also commented on the figures:

“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. We cannot have a position where public sector pay increases are running at around double the rate of the wealth creating private sector. We should not forget that public sector employment has continued to increase throughout the recession.

“Only business has the capacity to drive our economy out of recession. The current over-reliance on public sector employment and the worrying gap in pay trends must end to provide the conditions for a sustainable recovery.”

Further figures released by the ONS reveal that employment in the public sector increased by 23,000 in the third quarter of 2009 to 6.093m, compared with the previous quarter.