UK unemployment hit a 12-year high of 2.26 million during the three months to April but new figures revealed today that the pace of decline had eased.

Today’s figure, which rose by 232,000, is below the 2.279 million economists had been expecting while the number of people claiming unemployment benefits also rose more slowly than expected.

Claimants rose by 39,300 in May to 1.54 million, less than the 60,000 increase expected by economists and marks the smallest rise in 10 months. However, the number of people claiming benefits has swelled by nearly three quarters of a million over the last year, figures from the Office for National Statistics show.

Despite the recent slowdown in pace, economists still expect unemployment to reach three million next year as companies continue to shed jobs, although several economists have revised down their forecasts to show a peak of just over 3 million, rather than nearly 3.3 million.

Stephen Gifford, chief economist at Grant Thornton. said: "Today's increase in unemployment to 2.26 million is a despairing but not surprising statistic.

“The number out of work is predicted to rise to around three million by the middle of 2010, so today's figures confirm that there is still a great deal of pain ahead, despite the signs that the economy may be stabilising."

The wider survey-based measure of unemployment, which includes those out of work who do not sign up for benefits, was also lower than expected, as economists had tipped a bigger rise to nearly 2.8 million.

The rate of unemployment rose from 7.1 per cent to 7.2 per cent - the highest since 1997 when Labour came to power.

Average earnings in the period rose by 0.8 per cent, although this was bolstered by a 3.6 per cent increase in public sector pay. Those working in the private sector enjoyed pay rises of only 0.3 per cent.

Rate of Britons out of work by region*

North East 8.3 % (-0.3%)

North West 8.2% (+0.5%)

Yorkshire and the Humber 8.0% (+0.9%)

East Midlands 7.4% (+1.0%)

West Midlands 9.3% (1.4%)

East 6.0% (+0.6%)

London 8.1% (+0.6%)

South East 5.5% (+0.7%)

South West 5.8% (+0.6%)

* Headline estimates for February to April. Data supplied by Office for National Statistics

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