The data shows the unemployment rate has increased by 0.1 per cent to eight per cent, after a further 27,000 people became unemployed in the last quarter to January 2011.

ONS reveals that male claimants have decreased in numbers for 13 consecutive months, but in sharp contrast female claimants have increased for eight consecutive months.

In addition, the number of women aged between 25 and 49 claiming Jobseeker's Allowance has increased by 5,400 on the month to reach 250,400 the highest figure since comparable records for this series began in 1997.

Union TUC has described the hike in UK unemployment as "shocking", and the unemployment rate among 16 to 24 year olds as "a real concern".

Dr John Philpott, chief economic adviser at the Chartered Institute of Personnel and Development (CIPD), said: the figures "offer room for both optimism and pessimism".

"The headline rise in unemployment suggests that the labour market weakened at the turn of the year, well before the impact of the coalition government's spending cuts and tax rises start to take full effect," said Dr Philpott.

ONS figures revealed that UK unemployment claims unexpectedly fell in February by the most in eight months, adding to signs that the economy may be recovering from the impact of the economic crisis.

Statistics show that the jobless benefit claims dropped 10,200 from January to 1.45 million, the lowest since February 2009.

Dr Philpott explained: "Figures showing more people in work in the private sector and fewer on welfare benefits offers hope that the labour market might withstand the economic headwinds better than previously expected."

However, employers need to urgently invest in skills and training, as also highlighted in Professor Wolf's recent review; vocation-based training and Apprenticeship programmes can provide a vital lifeline for a growing generation of young people in the UK.

Liz Field, chief executive of the Financial Skills Partnership, said: "It is critical for employers to invest in training and skills in order to stimulate the economy and support the UK out of recession."

Field added: "Young people are recognising that work experience can be an incredibly valuable way to get a step on to the work ladder and employers need to be flexible and create more options to tap into this important talent pool."

In relation to the labour market statistics, a talent management company, SHL Group, said the education and employment sector in the UK is changing.

"Now is the time for firms to reconsider their recruitment processes to accommodate those without degrees. Many graduate recruiters have realised that 2:1 as a minimum entry point is a mistake and have already removed this barrier to entry into the job market," said Sean Howard, VP of business solutions at SHL Group.

Aastha Gill