Unemployment is rising in London, despite Government claims the economy is healthy and growing.

Figures released yesterday by the National Office for Statistics show 20,000 more people were made redundant in London between February and April - a half percent rise in unemployment.

Nationally unemployment rose by one per cent -36,000 people lost their jobs across the country in the same period, bringing the total number of unemployed to nearly 1.5 million, or 5.1 percent.

Reacting to the figures, David Kern, Economic Adviser to the British Chambers of Commerce said: "The figures are worse than expected. The UK labour market has so far been strong and flexible, but these figures are worrying.

"They clearly show the effects of the marked slowdown in GDP growth around the turn of the year, but we may also see already some of the adverse effects of the 1 percent April rise in NICs."

Nick Brown, Minister for Work, said: "These are testing times for the world economy, but in the UK the number of people in jobs is growing."