Data comes as millions of public sector workers vote on strike action; private sector not doing enough on jobs, says Oppn leader.

Unemployment levels in Britain have risen to a new high of 7.9 per cent, with 2.51 million people without work. From the numbers released today by the Office for National Statistics (ONS), the increase in the number of unemployed is the largest in nearly two years.

Youth unemployment rose sharply by 78,000 to 973,000. Total pay (including bonuses) rose by 2.8 per cent on a year earlier. Regular pay (excluding bonuses) rose by 2.1 per cent on a year earlier.

The ONS release revealed the number with work fell in the three months to July, by 69,000 to 29.17 million. There are 9.38 million inactive people in the UK between the ages of 16 and 64.

Neil Carberry, director for employment policy at the Confederation of British Industry, said: “This rise in unemployment is troubling, particularly the growing number of young people out of work. With one in five of 16-24 year olds unemployed, tackling youth unemployment must be a priority. Businesses are eager to play their part through apprenticeships, training and work placements, but now the government must do all it can to create the right conditions for the private sector to create much-needed jobs.”

Labour leader Ed Miliband said the Tory-Lib Dem government’s expectation that private sector job creation would make up for job losses in the public sector was not working. Addressing Parliament today during the Prime Minister’s Question session, he said for every two jobs lost in the public sector, the private sector was creating less than one.

The came on the same day as millions of public sector workers represented by the three main unions, Unison, Unite and GMB, threatened a large-scale strike over pension reforms announced by the current government. The mass strike could start as early as November and if carried out, could be the biggest since the General Strike of 1926.

“Today, as general secretary of Unison, I give formal notice to 9,000 employers that we are balloting for action,” said Dave Prentis, when he opened the Trades Union Congress debate on pensions this morning. Unison, with 1.1 million members, represents the largest number of public sector workers in the UK, followed by Unite and GMB.

Prentis said the government plans for public service pensions were “an unprecedented attack on ordinary working people and an audacious and devious means to pay for the greed of others”.

Brian Strutton, GMB national secretary for public services, said: “Talks over many months on changes to pension for GMB members in public services have got nowhere. GMB will now ballot these members for authority to conduct a sustained campaign of industrial action to secure a settlement acceptable to GMB members.”