The rise in British unemployment slowed abruptly in the three months to September to 2.46 million as the number of people landing jobs rose for the first time in more than a year.

New figures today, from the Office for National Statistics (ONS), showed that unemployment climbed by just 30,000 in the quarter to September — the smallest quarterly rise since spring last year.

There had been expectations that total unemployment would reach 2.5 million.

Britain's jobless rate stood at just 7.8 per cent, compared with 7.9 per cent between April and June, and below expectations of a rise to 8 per cent.

The number of people claiming unemployment benefit in October rose by 12,900, below the expected 20,000 increase, to 1.6 million.

There are hopes that today’s better than expected figures are a sign that the recession is receding and unemployment will fall short of an expected peak of three million.

Britain is the only leading economy still in recession after America recovered in the third quarter, joining Germany, France, China and Japan in reversing the slowdown.

Colin Ellis, European economist at Daiwa Securities, said the figures "provide...confirmation that the UK labour market is holding up much better than expected".

He said: "Fewer jobs are being lost than in past recessions, given the sharp contraction in the economy."

Mr Ellis said job losses have been contained, in part, because of workers' willingness to accept pay cuts and work less hours rather than risk losing their job.

However other groups were more sceptical, pointing out that the lower than expected rise in unemployment was in part down to an increase in part-time jobs, particularly for women.

Dr John Philpott, chief economist at the Chartered Institute of Personnel and Development, said: "Unemployment remained below 2.5 million in the three months to Septmeber primarily because there was a rise in part-time employment, temporary employment and contract working.......this more than offset a continued marked deterioration in full-time jobs for employees."

Today’s figures also revealed that the rate of 16 to 24-year-olds out of work swelled to a new high of nearly 20 per cent.

The total number of jobless 16 to 24-year-olds now stands at 943,000 — an increase of 15,000 on the previous quarter.

However, over a “rolling” basis, which compares the number of young people out of work in the three months to July, to August and to September the rate is falling.

In the three months to July, the total reached a high of 947,000. It then edged down to 946,000 in the three months to August and to 943,000 in the quarter to September.

Martina Milburn, the chief executive of The Prince's Trust, the youth charity, said: "While the levels of youth unemployment appear to be slowing, it is too soon to be complacent.

“One in five jobless young people desperately need our support. We cannot let this recession wipe out our young talent."

In total, there was a 99,000 fall in the number of people out of work for longer than six months.

Howard Archer, chief UK and European economist at IHS Global Insight, said the data was "really encouraging showing smaller rises than expected and extending the recent trend of slowing job losses."

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