Unemployment has increased by 27,000 despite another fall in the number of people claiming jobless benefits, new figures showed today.

The rise, the biggest for more than a year, took the total to 1.44 million, the highest since last Christmas.

The unemployment rate, covering the latest quarter to June, increased by 0.1% to 4.8%.

The number of economically inactive people, including those who are sick or disabled, have taken early retirement or simply stopped looking for work, increased by 89,000 to 7.85 million - the highest figure since records began in 1984.

The number of inactive men increased over the three months by 51,000 to 3.1 million, also a record high, while among women the figure rose by 38,000 to 4.75 million.

Wednesday August 11, 2004