Sometimes you just have to feel sorry for Gordon Brown. Just as he comes out strongly from the bank bailout, today's publication of dismal unemployment figures remind him that the situation in Britain is about to get a lot worse. If that wasn't bad enough - it emerges that the Government itself is planning a massive job cull.

The country's coffers are empty, yet the bill for jobless benefits is about to get a lot bigger. While today's figures reflect the rise in the number of people signing on for jobless benefits last month, the total unemployment measure only runs to August. Imagine the figures in November and December once Lloyds TSB skims off the excess workforce it inherits from HBOS and the Ministry of Justice starts cutting jobs. And these are only the high profile companies we know about. All across the country, small businesses are being forced to axe staff as the economic outlook deteriorates.

Some economists have said that unemployment could reach 2 million by Christmas and others predict that by yuletide in 2010, 3 million people will be out of work.

This is only the start of a long and painful process for Mr Brown.

Explore Economics

• Pre-Budget Report 2008

• Budget 2009

• World Economic Forum

• The Times MPC

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive