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In the final 3 months of last year the number of people employed in the Public Sector fell by 37,000.
So is the Coalition's claim that the private sector will create jobs to soak-up losses in the public sector working?
Our Consumer Editor Chris Choi reports from Newcastle.
Harriet Harman and Nick Clegg have clashed over the latest unemployment figures - which show those out of work have hit a 17-year high - during Prime Minister's Questions.
The Institute for Public Policy Research says its analysis shows that two thirds of the rise in unemployment over the last quarter has hit women, with 22,400 more women out of work and 5,200 more men.
UNISON General Secretary, Dave Prentis, said: “It is clear that we are not all in this together. Since the coalition came to power, one public sector job has been lost every 2 minutes and 18 seconds. That’s 625 public sector workers joining the dole queues every single day.
"Cuts are chocking off demand in our economy and hitting the private sector hard. It cannot create enough jobs to offset public sector losses and fuel our recovery. The government urgently needs a credible plan for growth and recovery. "
Employment Minister Chris Grayling says the latest unemployment figures - which have hit a 17-year-high - show a stabilisation in the labour market, but concedes there is a "long way to go", to tackle UK unemployment as a whole.
Responding to the latest unemployment figures, TUC General Secretary Brendan Barber said: “The rise in employment is encouraging, but the new jobs being created are mainly part-time. These jobs are not paying enough to replace the full-time earnings that people need.
“The sharp fall in pay increases is also worrying as it will prolong the painful squeeze on family incomes throughout the year."
“Tackling the jobs crisis should be at the centre of the Chancellor’s Budget next week. Bold new measures such as a youth jobs guarantee and tax breaks for investment are needed to get our economy growing again,” he added.
The number of people working part-time because they could not find a full-time job increased by 110,000 to 1.3 million, the highest since records began in 1992.
Part-time employment rose by 60,000 to 6.6 million, while self-employment fell by 52,000 to just over four million, the Office of National Statistics said.
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The unemployment rate has increased to a 17-year high after another rise in the jobless total and a huge fall in public sector employment.
Despite the number of people out of work hitting a 17-year high, could an economic recovery be on the horizon?