Signs that the credit crunch is hitting Britain's jobs market emerged yesterday as official figures showed the first rise in the number of people out of work and seeking benefit since 2006.

Economists said that despite strong overall employment numbers, there were real fears that the jobs market could weaken over the coming months. The official employment figures showed redundancies across the finance and business sectors have risen more than 11 per cent in recent months.

The numbers came as the high street suffered one of its biggest days of blood-letting since the start of the year, with JJB Sports, the UK's biggest sportswear retailer, announcing plans to close 72 stores and cut 800 staff.

Ethel Austin, the discount fashion chain that collapsed into administration on Monday, also announced that it had laid off more than 420 staff.

Fujitsu, the Japanese manufacturer, added to the gloom by unveiling plans to move work from Birmingham to the US with the loss of 120 jobs.

Vicky Redwood, UK economist at Capital Economics, said: “The unambiguous robustness in the labour market of a few months ago is starting to fade.”

Britain's jobs market has held firm in recent months despite the storm clouds gathering over the economy.

Yesterday's official figures showed the employment rate rose to 74.9 per cent - the highest since its records began in 1971 - in the three months to February. The number of people in work is 29.51 million. However, the number of people seeking jobseekers allowance rose in February by 600 - the first rise since September 2006.

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