The unemployment rate remained at 8.3%, or 2.64m people, in the quarter from August to October, as the UK economy shows signs of ’stabilising’, suggests employment minister Chris Grayling.

The number of people unemployed actually rose by 128,000 over the period in question, but not enough to increase the previous 8.3% figure, while the employment rate decreased slightly from 70.5% to 70.3%.

However, month-on-month the number of people in employment has increased, with Grayling saying: “There has obviously been an unwelcome increase in unemployment since the summer but these latest figures show some signs that the labour market is stabilising. The number of people in employment is higher than last month’s published figure and the number of unemployed people is steadying.”

Andrew Sissons, researcher at the Work Foundation says: “Persistently high unemployment will worsen the already serious problem of long-term unemployment.

“Almost half of people trapped in long-term unemployment are either under 24 or over 50, and these groups will find it especially hard to get back into work. Unemployment will only stop rising when businesses regain their confidence.”

Daniel Callaghan, director of consulting and research network, MBAandCo.com, agrees: “The fact is that most companies are still too cautious to hire. Should their fortunes take a turn for the worse in this fragile economy, excessive spending on wage bills could prove fatal.”

Clive Davis, director of Robert Half UK, suggests that this caution is manifesting itself in another way, adding: “Companies are targeting experienced individuals who can help them navigate an ever-changing economic landscape and in many cases are relying on specialised temporary and interim professionals to support key initiatives.

“Currently 18% of UK finance departments are comprised of temporary or interim employees and 63% of CFOs plan to add to these levels within the coming year.”

For the CIPD’s take on the way current unemployment, see ’Both sides lose in the employment battle of the sexes’.