The latest figures have shown a rise in unemployment levels.

Data published by the Office for National Statistics on Wednesday revealed that the number of people out of work rose by 6,000 between March and May to stand at 1.43 million, a rate of 4.8 per cent.

However, the number of people claiming Jobseeker's Allowance continued to fall, dropping  by 9,600 to 850,900 in June, the lowest level since August 1975.

Jane Kennedy, the minister for work, said the labour market was still performing well.

The underlying trend in employment is rising, she argued, despite some fluctuations from quarter to quarter.

"The UK's success has been built around a strong economy and a flexible labour market, which has delivered one of the lowest levels of temporary work in the industrialised world," she said.

"In addition, we have put in place a wider range of help for people without work than ever before.

"We are world leaders in policies to raise the proportion of the population who are in work, tackling not just unemployment but increasingly the larger number of people classified as inactive."