Highest UK unemployment for 17 years
16 November 2011 Last updated at 13:50 GMT
The latest official jobless figures show that unemployment is continuing to rise - and is now at its highest level for 17 years.
Youth unemployment has also increased, with more than a million now out of work.
Meanwhile the Bank of England has cut its 2011 and 2012 growth forecasts to about 1%.
Sir Mervyn King said the global economic outlook had "worsened" and the economy could stagnate until the middle of next year.
The BBC's chief Economics correspondent Hugh Pym reports.