The number of people claiming Jobseeker’s Allowance soared by 23,500 last month to reach the highest level since Labour came to power in 1997, new figures showed today.

The claimant count increased to 1.64 million in January, the worst figure since April 1997. In Shropshire and Mid Wales, the number of people claiming unemployment benefit also saw a hike.

It rose by 778 from 11,398 in December to 12,176 last month.

In Shropshire, the number rose by 451 from 4,788 to 5,239, in Telford & Wrekin the claimant count went up from 4,582 in December to 4,825 last month and in Powys, the number claiming the allowance rose by 84 from 2,028 to 2,112.

Nationally, long-term unemployment, covering those out of work for more than a year, increased by 37,000 in the quarter to December to 663,000, also the highest figure since 1997.

The number of people classed as economically inactive reached a record high of 8.08 million, more than 21 per cent of the working age population. The figure covers students, people looking after a sick relative, or those who have given up looking for work, with records dating back to 1971.

Unemployment in the latest quarter fell by 3,000 to 2.46 million, giving a jobless rate of 7.8 per cent, unchanged from the previous three months.

Other data from the Office for National Statistics show-ed that the number of people in employment fell by 12,000 to just under 29 million. There was a drop of 37,000 in full-time employment, offset by a 25,000 increase in part-time employment.

Unemployment among 18 to 24-year-olds fell by 13,000 in the last three months of 2009 to 725,000, while for 16 to 24-year-olds the total dropped by 13,000 to 923,000.

Average pay was £451 a week in December, a rise of 0.8 per cent over the year, while excluding bonuses the figure was £425, an increase of 1.2 per cent, the joint lowest since records began.

The number of job vacancies in the three months to January increased by 49,000 to 479,000.

There was a 23,000 rise in public sector employment in the quarter to last September to 6.09 million, while private sector employment was up by 15,000 to 22.8 million.

By Business Editor Amy Bould