Figures out today show the largest annual increase in employment since 1997. The new figures, issued by the Office for National Statistics, also show that the number of people in employment is the highest on record at 29.5 million.

Stephen Timms, Minister for Employment and Welfare Reform said:

"More people now than ever are in work, while unemployment continues to fall - showing strong performance in spite of the current global economic turbulence.

“Behind every statistic is a life changed by having the opportunity to work and get on in life. This is Labour values in action.

“This record level of employment has only happened because we have taken the tough, long-term decisions that are right for our economy. But there are still people who would be better off, happier and healthier if they were in work, which is why Labour is putting forward a welfare reform programme which will give everyone the opportunity to work.

"This data flatly contradicts the gloom that the Tories have been trying to spread over the last couple of days. What would be a disaster is the Tory economic policy of billions of pounds of unfunded tax promises, which would undermine economic stability and risk taking Britain back to the days of 15 per cent interest rates and three million unemployed."

The number of vacancies is at a record high, rising 12,000 on the quarter to 687,600, while the number redundancies are down 17,000 to a record low of 106 thousand. Unemployment continues to fall, down 90,000 from a year ago.