According to ONS statistics the employment rate was 70.4% and there were 29.10 million employed people in the three months June to August 2011.
The inactivity rate was 23.3% and there were 9.35 million inactive people aged from 16 to 64.
The unemployment total for 16-24 year olds hit a high of 991,000 in the quarter.
However total pay (including bonuses) rose by 2.8% on a year earlier and regular pay (excluding bonuses) rose by 1.8% on a year earlier.
Charles Logan, director at recruiter Hays, said: "Rising unemployment figures aren't a surprise to anyone given the unease and challenging conditions that we are still faced with in the UK. Confidence to recruit is low and there is a lot of scrutiny over all hiring decisions - whether in the public or private sector. We are still at a stage where companies are replacing people who leave, but the creation of new jobs remains quite scarce.
"An increase in youth unemployment is yet another worrying sign of our economic instability. It is difficult for companies to continue to invest in the next generation of workers when resources are so stretched and there is talk of a double dip, but it is critical if we are to avoid a generation out of work and skill shortages further down the line. Graduates have an important part to play in developing their skills to move their career forward and ensure they have the skills and relevant experience employers will want in the future."
Daniel Callaghan, director of recruitment service, MBA & Co, added: "These figures will make extremely grim reading for the UK's jobseekers, as well as those facing the threat of redundancy.
"The public sector continues to make cuts, and the private simply cannot accommodate these. Instead, a significant number of UK companies are concentrating on keeping their businesses afloat.
"Companies are cautious about hiring full-time employees, which is understandable given that, at the moment, the economy is unpredictable at best.
"Businesses do not have the time or the money to invest in training graduate employees, and this is reflected in the rise in youth unemployment.
"This is battering today's University graduates who, without any real world experience, are even less employable than those who have been operating within an industry for a few years.
"With this trend set to continue for the foreseeable future, jobseekers must be wondering if there will ever be light at the end of the tunnel."
