Official figures show that unemployment in the UK is now at 2.38m, the highest level since 1995.
The jobless rate increased to 7.6%, the highest in more than 10 years.
The number of people claiming unemployment benefit increased by 23,800 in June to 1.56 million, which was less than analysts had forecast.
Unemployment among young people has been especially acute, as firms cut jobs to reduce costs in the downturn.
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