THE scale of the jobs crisis facing the new government was underlined today when new figures showed that unemployment has soared over 2.5 million, the highest total since 1994.

The number of people looking for work rose by 53,000 in the quarter to March to 2.51 million, while the UK's employment rate slumped to 72 per cent, the lowest since 1996.

Other figures from the Office for National Statistics showed that the number of people classed as economically inactive has reached a record high of 8.17 million.

The total, which includes students, people looking after a sick relative or those who have given up looking for work, increased by 88,000 in the latest quarter and is now the worst since records began in 1971.

Youth unemployment has also increased, with the number of 16 to 24-year-olds out of work up by 18,000 to 941,000, the joint highest since records began in 1992.

The number of people in work fell by 76,000 to 28.83 million following a reduction of 103,000 in full-time workers, compared with a rise of 27,000 part-timers.

Job vacancies fell by 6,000 to 475,000, the first quarterly fall since last autumn.

The only bright spot in today's grim figures was another fall in the number of people claiming jobseekers allowance, down by 27,100 last month to 1.52 million, the lowest level for a year.