by business editor Trevor Sturgess

Unemployment has edged up by 85 across Kent and Medway while the national figure is the highest for 17 years.

The total number of people claiming Jobseeker's Allowance in the county stood at 35,402 on October 13, according to figures published today by the Office for National Statistics.

In Medway, the claimant count dipped by two to 7,118 (4.2% of the workforce). In the rest of Kent, the total rose by 87 to 28,284 (3.2%).

Nationally, the number of people out of work in the three months to September jumped 129,000 to 2.62m, up 0.4% on the previous quarter and a worryingly high 8.3% of the workforce.

The unemployment rate is the highest since 1996 and the number of unemployed people the highest since 1994.

As feared, youth unemployment passed the critical one million mark.

The number of 16-24 year olds not in full-time education, rose to 730,000.

Those in full-time education and looking for work stood at 286,000, making a combined total of 1,016,000.

The steep rise in youth unemployment was condemned as "truly shocking" by Roger House, the chairman of the Federation of Small Businesses in Kent and Medway.

He called on the Government to "wake up and take action" to avoid a generation "disappearing from the workforce".

Mr House said the county's micro firms would hire young people if National Insurance Contributions were reduced in line with those in other parts of the country.

"It is not logical or fair that affluent areas of the West and North of the UK enjoy these benefits when deprived areas of Kent are disqualified," he added.

"The Government must ensure that young people are not hindered at the very beginning of their careers. We cannot afford to watch this generation just disappear from the workforce."

John Cridland, director general of the CBI, said urgent action was needed to help young people.

He said: "A generation risks being scarred by the devastating effects of long-term unemployment.

"We are calling for action for jobs now, with a clear plan to get the UK working, focusing on our young people.

"The Chancellor should use his autumn statement to announce a Young Britain Credit, worth £1500, to encourage firms to take on an unemployed 16 to 24 year-olds."