Hunt’s budget aims to push people back to work just as the jobs market weakens

Chancellor is trying to to increase employment, but redundancies are up and wage growth has slowed

• UK pay growth slowdown adds to inflation squeeze on households

The last set of labour market figures before the budget provides a stark illustration of the challenges facing Jeremy Hunt, though they are different from those usually associated with a stagnant economy.

There was a time when the absence of growth for an entire year would have led to sharply rising unemployment. During the recessions of the early 1980s and 90s the jobless total was more than 3 million while the jobless rate rose to more than 10% - three times its current level of 3.7%. Increasing labour supply was not a priority for the Thatcher and Major governments of the time.