Rachel Reeves suffered a fresh blow this morning as unemployment rose while wages fell.
The unemployment rate rose to 5% in the three months to September, from 4.8% in the three months to August, the Office for National Statistics said.
And average earnings fell to 4.6% in the three months to September and was 0.8% higher after taking Consumer Prices Index inflation into account.
It is a huge blow to Ms Reeves, with the Chancellor set to clobber millions with tax hikes at her upcoming Budget.
Shadow Business Secretary Andrew Griffith said: "At 5% unemployment Labour ministers should hang their heads in shame.
"A £25 billion NI hike, falling business confidence and threat of draconian union and worker rights have all contributed to today's rise. 'Generation jobless' is now happening on Labour's watch."
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