Unemployment to exceed 2m for first time under New Labour

Unemployment is expected to exceed two million for the first time since Labour came to power in 1997.

Official figures to be released on Wednesday morning will show that tens of thousands of people lost their jobs in the three months to December.

They come amid evidence that Britain's jobless total is rising twice as fast as the European average.

The unemployment total hit 1.92 million in the three months to the end of November. Since then thousands of staff have been sacked by major employers, including 27,000 at Woolworths.

A further 2,300 were made redundant by the Royal Bank of Scotland on Tuesday.

The number of people who claimed Jobseekers' Allowance in January will also be released, offering a more up-to-date insight into the damage being done to the jobs market by the recession. The total reached 1.16 million in December.

An analysis by the TUC showed that while Britain's unemployment rate - 6.1 per cent - is lower than the European average of 7.7 per cent, it is now rising twice as fast as the European average.

Between December 2007 and October 2008, Britain had the third sharpest increase in unemployment, behind Spain and Ireland, said the unions.

Over the same period, unemployment in France went up by just 0.1 per cent and fell 0.8 per cent in Germany.

In advance of the figures' release, James Purnell, the Work and Pensions Secretary, said: "We know times are tough and we will do all we can to help people who lose their jobs find another as quickly as possible to prevent the long-term unemployment which has so scarred communities in the past from taking root."

Gordon Brown is to meet business leaders shortly before the figures are announced, to discuss ways of giving more assistance to people losing their jobs.