Brown hit by jobs setback

Though desperately worrying for those concerned, these figures were not surprising because they include those retail workers whose temporary contracts ended at Christmas. Indeed, Gordon Brown hinted as much last week during his visit to Leeds.

In many respects, the more pertinent data will be tomorrow's quarterly breakdown of GDP figures which will indicate whether Britain remains on the road to recovery or has returned to a state of recession – the worst-case scenario for Labour during an election where Mr Brown's economic credibility is a central theme.

Predictably, with the opinion polls in such flux ahead of tonight's second debate between the party leaders, the Tory response was almost apoplectic, with Ken Clarke and George Osborne claiming that Britain may need to be bailed out by the International Monetary Fund if the election results in a hung Parliament.

Yet, while their warning may have some resonance if the deficit is not cut, what is more important, however, is how the jobless rate – and youth unemployment in particular – can be lowered.

At present, there is a tendency for politicians from all parties to talk above people as they trade statistics. Instead, they need to focus their attention on those people out-of-work and on how existing policies can become even more effective.

This is even more relevant in a region like Yorkshire which found itself on the wrong side of the North-South divide before the recession even began.

If the Conservatives come to power, regional development agencies like Yorkshire Forward will be abolished – or have their powers greatly stripped.

It raises one question: is this the time to be scaling back a body that has played such a pivotal role, despite yesterday's depressing figures, in keeping the overall jobless rate to a minimum, and far lower than the levels forecast by many politicians at the onset of the credit crunch?