The youth unemployment rate has reached a record high of almost 20 per cent as the jobless total continued to increase, although at a slower pace.

The number of people out of work increased by 30,000 between July and September to just under two and a half million.

Other figures showed that the number on jobseeker's allowance rose by 12,900 in October to 1.64 million, the 20th consecutive monthly increase, giving the worst total for 12 years, said the Office for National Statistics.

The number of people classed as economically inactive, including those on long-term sick leave, looking after a relative or who have given up looking for work, reached a record high of eight million after a 41,000 increase over the latest quarter.

The inactivity rate is now over 21 per cent of the working age population and the total is the highest since records began in 1971.

Youth unemployment also continued to rise, with the number of 16 to 24-year-olds up by 15,000 to 943,000, giving a rate of 19.8 per cent, a record high. The number of 18 to 24-year-olds out of work rose by 24,000 over the three months to 746,000, a rate of 18 per cent, the highest since 1992.

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