The number of people out of work rose by 177,000 to 2.1 million in the three months to February, official figures showed today, as Alistair Darling prepared to outline his “Budget for jobs.”

New jobs data from the Office National Statistics (ONS) was much better than expected with the number claiming benefits rising by 73,700 to 1.46 million in March. The figure is a major improvement on February when the number of people claiming jobseekers’ allowance rose by a record 138,400 to 1.4 million.

The figures were unveiled as Mr Darling prepared to unveil a Budget that will include a £2.5 billion package to guarantee work or training for every young person out of work for more than a year.

Thousands more Civil Service jobs will be lost over the next four years as departments struggle to find £45 billion in “efficiency savings” by 2013-14.

Alistair Darling will claim to be introducing a “Budget for jobs” today with a £2.5 billion package that includes a guarantee of work or training for every young person out of work for more than a year.

The Chancellor will also back recommendations by five external advisers to find savings by cutting office space, selling property, privatising assets and sharing purchasing contracts across the Government.

The advisers recommend savings starting at £5 billion a year and rising to £15 billion annually by 2013-14. Suggestions include cutting office space by 30 per cent, through hot-desking, halving the size of the Land Registry and preparing the Royal Mint for whole or partial sale.

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