Unemployment rate steady

The number of people out of work and claiming benefit fell by 10,600 in January to 951,300. There were 721,600 unemployed men - a 4.4% rate - and 229,700 women - a rate of 1.7%. The overall unemployment rate under this measure was steady at 3.2% of the workforce.

However, under the government's preferred measure - the International Labour Organisation (ILO) count - unemployment rose by 34,000 in the three months to December to 1,546,000. The unemployment rate went up from 5.1% to 5.2%.

TUC general secretary John Monks said: "While the latest fall in claimant unemployment is good news, the ILO figure shows the number of people looking for work has risen by 34,000 and the manufacturing sector is now losing almost 20,000 jobs each month".

He called for government intervention, adding: "In the medium term, manufacturing desperately needs the government to help out in April's Budget. In the longer term, we need a coherent industrial strategy for the future."

The TUC has urged the chancellor to use the Budget to unveil a £900 million package to rescue industry and tackle the productivity gap with the rest of the world.

It wants effective and targeted investment in manufacturing, in particular tax credits and more money for the regions.