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.
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.