Unemployment increased by over 20,000 between February and April, as did the number of people classed as "economically inactive", official figures have shown. 
Some 2.47 million people are now out of work in the UK after a rise of 23,000 - giving a jobless rate of 7.9%.
However, the number of people claiming jobseekers' allowance last month fell by 30,900 to 1.48 million, the Office for National Statistics (ONS) said.
Long-term and youth unemployment both increased, but the most striking figure was a 29,000 rise in the number of people classed as economically inactive.
That took the total to 8.19 million, which is some 21.5% of the working age population.
Employment Minister Chris Grayling told Sky News the figures underlined the challenge faced by the new Government.
"The reality is we have stubbornly high levels of unemployment, with a small increase in the last quarter," he said.
"Our goal is to get employment as low as we possibly can and we will only get that if we can get a vibrant and dynamic private sector creating jobs again."
Mr Grayling also defended the coalition's planned spending cuts, which a leading economist predicted would see 500,000 jobs lost.
The minister said reducing the deficit was a necessary step in generating wealth and enterprise.
"The Government can't provide an endless source of money to create jobs in this country," he said.
However, the shadow work and pensions secretary Yvette Cooper told Sky News the coalition appeared to have accepted unemployment was a price worth paying.
She added it was "terrible and shocking" that 90,000 planned jobs would disappear as a result of scrapping grants for the Future Jobs Fund.
"They want to make cuts now because they think it is more important to do that than support jobs," she said.
"I think that's the wrong approach and will cost us more in the long-term. If you support jobs, you save money in benefits payments."
The latest ONS figures also showed public sector employment fell by 7,000 in March to 6.09 million, while employees in private firms increased by 12,000 to 22.78 million.
Average pay increased by 4.2% in the year to April, down by 0.1% from the previous month.
However, the number of people claiming jobseekers' allowance last month fell by 30,900 to 1.48 million, the Office for National Statistics (ONS) said.
Long-term and youth unemployment both increased, but the most striking figure was a 29,000 rise in the number of people classed as economically inactive.
That took the total to 8.19 million, which is some 21.5% of the working age population.
Employment Minister Chris Grayling told Sky News the figures underlined the challenge faced by the new Government.
"The reality is we have stubbornly high levels of unemployment, with a small increase in the last quarter," he said.
"Our goal is to get employment as low as we possibly can and we will only get that if we can get a vibrant and dynamic private sector creating jobs again."
Mr Grayling also defended the coalition's planned spending cuts, which a leading economist predicted would see 500,000 jobs lost.
The minister said reducing the deficit was a necessary step in generating wealth and enterprise.
"The Government can't provide an endless source of money to create jobs in this country," he said.
However, the shadow work and pensions secretary Yvette Cooper told Sky News the coalition appeared to have accepted unemployment was a price worth paying.
She added it was "terrible and shocking" that 90,000 planned jobs would disappear as a result of scrapping grants for the Future Jobs Fund.
"They want to make cuts now because they think it is more important to do that than support jobs," she said.
"I think that's the wrong approach and will cost us more in the long-term. If you support jobs, you save money in benefits payments."
The latest ONS figures also showed public sector employment fell by 7,000 in March to 6.09 million, while employees in private firms increased by 12,000 to 22.78 million.
Average pay increased by 4.2% in the year to April, down by 0.1% from the previous month.
