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Unemployment hits 1.79m

Unemployment has increased by 164,000 to 1.79 million in the quarter to August - its worst level since 1999.

The figure equates to an unemployment rate of 5.7%, up by 0.5% over the quarter, according to the Office for National Statistics.

But Vicky Redwood, of Capital Economics, predicts total unemployment will rise by 1.5 million to around three million by the end of 2010.

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