The UK's unemployment rate ticked up to 4.6% in April while the number of people in work fell sharply, according to official figures released in the last hour.
The ONS said the new unemployment rate covering the three months to April was the highest since July 2021.
It previously stood at 4.5% - a total of more than 1.6 million people.
At 4.6%, it is above the peak level predicted for this year, just in March, by the Office for Budget Responsibility.
It follows a number of tax hikes taking effect in the spring.
Figures highlighted by the ONS also show the number of people in payrolled employment during May fell by 109,000 - double April's revised figure of 55,000 - and the biggest monthly drop in five years.
The numbers put further pressure on Rachel Reeves ahead of her spending review tomorrow.
Figures are disappointing but no surprise, says Tory
Reacting to the figures, the shadow business secretary said rising unemployment is "disappointing but no surprise".
Andrew Griffith added: "Businesses are still absorbing a 拢25 billion Jobs Tax, but things are about to get even worse as Labour鈥檚 拢5 billion 鈥楤ill for Unemployment鈥� hits businesses with higher regulation."
The 'jobs tax' refers to the rise in employer national insurance contributions (NICs) introduced by the chancellor earlier this year.
We will be hearing more from Griffith on Sky News shortly.
Meanwhile, the Liberal Democrats have said the figures "could not be a clearer signal to the chancellor that the government must change course".
Daisy Cooper said Reeves' "pig's ear of a jobs tax is crushing the growth potential of our high-streets and small businesses, pushing people out of work and ramping up the benefits bill".
She has called for the government to "take handbrake off our economy" and create a bespoke EU-UK customs union.
Ed Miliband said it is "regrettable" whenever someone loses their job, but said employment remains "historically, relatively low".
The energy secretary told Sky News: "We're the fastest growing economy, in the G7. We're making big investments. And you know what you'll see from the chancellor tomorrow in the spending review... is a determination to invest for the future of this country. And that's good for jobs."