UK jobless total at 1.97 million

UK unemployment rose to 1.97 million between October and December, the highest level since 1997, figures show.

The jobless number climbed 146,000 for the three-month period, data from the Office for National Statistics showed.

For December, the number of those getting jobseeker's allowance added 73,800 to reach 1.23 million.

The internationally recognised unemployment rate reached 6.3%, the highest since 1998, in a further sign of the weakening economy.

Many analysts had forecast that unemployment could reach two million for the three-month period - which would have been the highest since 1997.

But there are fears the situation will worsen further in the months ahead as the economy cools.

Peter Mooney, head of consultancy with Employment Law Advisory Services, said: "From early in December, the number of firms seeking our help in making redundancies simply exploded."

He added: "Things will certainly get worse before they get better. We would expect to see another significant increase in the number of people out of work in the figures published next month, as many more firms were forced to cut staff early in the New Year."