The economic recovery in U. K has received a set back as the latest numbers disclosed by The National Statistics Office regarding jobless benefit claimant showed an increase of 23,500 in January.

The unemployment rate is steady at 7.8 for the three months ending in December as per the Office for National Statistics. The number of people claiming the jobseeker's allowance increased to 1.64 million, which is the highest figure in last 12 years.

A few days back, the U. K. inflation rate rose to 3.5% in January and now the increase in jobless data cast shadows on the economic recovery. The fastest annual pace of inflation rate in 14 months shows that the British economy is under pressure from rising prices. In January the government reverted its decision of a temporary cut in VAT to 15% from earlier 17.5%.

As per ONS(Office for National Statistics), the number of people who have been out of work for longer than a year touch a 13-year high of 663,000 as the agency reported an increase of 37,000 in the three months to December.