Highest UK unemployment for 17 years

The latest official jobless figures show that unemployment is continuing to rise - and is now at its highest level for 17 years.

Youth unemployment has also increased, with more than a million now out of work.

Meanwhile the Bank of England has cut its 2011 and 2012 growth forecasts to about 1%.

Sir Mervyn King said the global economic outlook had "worsened" and the economy could stagnate until the middle of next year.

The BBC's chief Economics correspondent Hugh Pym reports.