The Office for National Statistics has released the latest unemployment figures, which show that in the three months leading up to November 2011, unemployment in the UK rose by 118,000 to 2.85 million.

The report also shows that more people are working part time - the highest amount since 1992 - because they are unable to find full time roles. The number of young people out of work is continuing to rise, hitting 1.04 million in the three months to November, up 52,000 on the previous three months to October.

Chris Williamson, the chief economist at information provider Markit, said: ‘The increase in unemployment, plus job security worries and low pay growth for those in work, means consumer spending may remain very subdued this year, despite lower inflation alleviating the squeeze on real incomes that caused so much distress to households in 2011.’

Pay growth over the last year has been 1.9% - lower than half the rate of inflation - putting financial strains upon many households.

If you would like more information on household support and unemployment, take a look at the ESF-Works theme pages.