UK unemployment has risen to 4.1% with 695,000 workers losing their jobs since March.
The Office for National Statistics (ONS) said the rate of unemployment increased from 3.9% as another 36,000 jobs fell off payrolls across the UK.
Meanwhile, unemployment increased by 104,000 to 1.4 million for the three months to July.
August's numbers are based on a "flash estimate" with early data and could change.
Unemployment hasn't risen as much as feared because a large number of workers have been put on the government's furlough scheme, meaning they're still classed as employed.
Experts say the full effect on unemployment will be felt once the scheme ends in October.
Last month, the Bank of England predicted unemployment could hit 7.5 per cent due to the coronavirus crisis.
The Office for Budget Responsibility (OBR) recently also predicted that unemployment is set to hit 12 per cent this year as the furlough scheme winds down.
This would affect 3million people, up from 1.3million in 2019.
ONS director of economic statistics Darren Morgan said: "Some effects of the pandemic on the labour market were beginning to unwind in July as parts of the economy reopened.
"Fewer workers were away on furlough and average hours rose.
"The number of job vacancies continued to recover into August, too.
"Nonetheless, with the number of employees on the payroll down again in August and both unemployment and redundancies sharply up in July, it is clear that coronavirus is still having a big impact on the world of work."
More to follow…
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