The number of people claiming jobseeker's allowance has increased for the fifth month in a row to reach its highest level for more than a year.
The co-called claimant count rose by 8,800 in June to 864,900, an increase of 13,400 from a year ago.
Total unemployment, including people not eligible for benefit, fell by 4,000 over the quarter to May to 1.43 million.
West Midlands seasonally adjusted claimant count unemployment is still showing the MG Rover effect.
It hit 96,800, up 1,900, 3.5 per cent of the workforce. That followed a rise of 5,700 in May. The unadjusted equivalent was 95,500, down 900, 3.5 per cent.
The wider measure saw the West Midlands with 117,000 people out of work, minus 8,000, 4.4 per cent of the workforce. The East Midlands equivalent was 94,000, minus 4,000, 4.3 per cent.
Nationally, the number of people in work fell by 72,000 over the quarter to 28.5 million, the biggest decline in 12 years.
The fall occurred entirely within the under 35 age bracket.
Meanwhile, the number of people classed as economically inactive, including those on early retirement, students or those with caring responsibilities, rose by 125,000 over the latest quarter to 7.9 million --21.5 per cent of the country's working population.
Other data from National Statistics showed that average earnings increased by 4.1 per cent in the year to May, down by 0.5 per cent from the previous month. Wage growth in the public sector was 5.6 per cent, the highest figure for almost four years, compared with 3.8 per cent in private firms.
The increase in public sector pay for the month of May was 7.6 per cent, the highest figure since 1992. Bonus payments in transport, storage and communications were said to have fuelled the surge.
The loss of manufacturing jobs continued, with employment in the sector falling to 3.2 million in the three months to May, the lowest figure since records began in 1978.
The total slumped by 81,000 compared with the same period a year ago, with the biggest losses reported in textiles, leather and clothing.
It came as the planned closure of a 92-year-old cigarette factory with the loss of 530 jobs was announced. British American Tobacco said its plant in Southampton will go within 18 to 24 months.
Production will probably be transferred to Poland, Romania and Switzerland. A plant at Dundalk in the Republic of Ireland will also shut, with the loss of 66 jobs.
The claimant count rate has remained virtually unchanged at 2.8 per cent over the past year despite the latest increases, while the total unemployment rate has fallen by 0.1 per cent to 4.8 per cent over the past year.
The UK continues to have one of the lowest unemployment rates in the developed world. Employment Minister Margaret Hodge said: "Compared to this time last year, there are more people working, unemployment is broadly unchanged and there are fewer people claiming out-of-work benefits.
TUC general secretary Brendan Barber said: "The slight weakening in employment performance seems to be hitting young people first, other groups are mainly unaffected.
"In the medium term we need Government and industry to invest more in training for young people, but there is now an urgent need for the Bank of England to cut interest rates."
John Philpott, chief economist at the Chartered Institute of Personnel and Development, said the figures were "easily the weakest" for some time. "The big worry now is that more private sector jobs could be at risk later this year if the Bank of England decides to keep interest rates on hold until the autumn."
Shadow Work and Pensions Secretary Sir Malcolm Rifkind said: " The figures make depressing reading.
"They confirm that the number of young people not in work, education or training is now well over a million and at the highest level since Labour took office.
"It is a sad fact that in the last year alone, 27,000 more under-25s have joined the dole queue."