The total number of people unemployed increased by 220,000 to 2.44 million in the three months to June - the highest level since 1995.
With many losing their jobs as a result of the recession, they are now struggling to compete with the thousands of other people searching for work.
Three people tell their stories.
HITESH RAO: IDEAL JOB NOT AVAILABLE
Why picking own role may not be possible
Hitesh Rao was made redundant at the end of May, just two months after he and his wife bought a new house.
Despite dozens of applications and several interviews he has so far had no luck finding a job in IT.
"Picking and choosing your own role at the moment, I think, is being unrealistic".
DARREN POTTS: WHY I AM JOINING THE ARMY
Darren Potts explains why he has joined the Army
A job seeker from Stoke-on-Trent has just taken his oath to serve in the Army, in order to get a job.
Darren Potts was self-employed for 13 years, but because of the recession, his garage door business collapsed.
His partner Jane Harrison said "it's been a strain financially and a strain on our relationship".
GEOFF LOWE: VOLUNTEERING TO BOLSTER CV
Geoff Lowe hopes his voluntary youth work will help get him a job
Geoff Lowe worked for van maker LDV for nearly 40 years before being made redundant when the company went into administration in early 2009.
A former youth worker, he is hoping that volunteering to help with his local youth Community Club will bolster his CV and help him get back to work.