The number of unemployed people increased by 165,000 to 2.03m in the three months to January, according to the Office of National Statistics.

John Philpott, chief economist at the Chartered Institute of Personnel and Development, says: “The rise in the headline level of unemployment above 2m is only part of the sorry story.

“Much more alarming is a surge in claimant unemployment in February – the monthly increase of 138,000 in the number of people claiming Jobseekers’ Allowance surpasses even the darkest days of rising unemployment in previous recessions.”

Kevin Green, chief executive of trade body the Recruitment and Employment Confederation, says: “As the jobs market contracts, we need to make sure every job opportunity is maximised.

“As part of this, the REC is currently working with the government to ensure that temporary, interim and contract positions are utilised as a method of getting people into work - even in the current climate, there are over a million temporary assignments taking place every week.”

The increase is the fastest rise since 1971.