Unemployment reached a 17-year high today after an 118,000 increase in the jobless total, which saw a record number of young people out of work.
The latest set of grim figures prompted calls for the Government to help employers create jobs and stimulate house building.
Mike Leonard of the MMA said, "As we predicted in September 2010, when we published our Get Britain Building Plan B, unemployment will continue to rise throughout 2012.
"We are now witnessing a lost generation of young people and a major skill drain with over 800000 job loses in construction industry and the supply chain.
"How long will the Coalition wait before intervening to provide the stimulus for economic growth and new jobs?
"Our message is clear, the current plan is clearly not working. Mr Osborne needs to act now, not through printing more money, but by funding a major social housing program where 92 pence of every £1 invested will stay in the UK.
"This will create jobs by ensuring demand for our UK based building materials industry and by creating construction jobs for young people and unemployed skilled workers.
"It will also begin to address the growing housing crisis and the social and economic issues that are a result of this.
"This is no longer an option but is now a necessity if we are to head off the biggest crisis since the Great Depression."
The unemployment figure jumped to 2.68m in the three months to November, the worst since 1995, giving the UK a jobless rate of 8.4%.
Young people looking for work rose to 1.043m, taking the rate for 16-24 year-olds to 22.3%.
The statistics revealed the private sector was failing to compensate for waves of job losses across the public sector. During the period just 5,000 private sector jobs were created, while 67,000 public workers lost jobs.
Employment Minister Chris Grayling said: “The overall level of unemployment is, and will remain, a major concern for the Government.
“The latest figures reflect the current challenging economic climate but also show more women entering the workforce and more students looking to supplement their income through work.”
The North East suffered the largest quarterly rise in unemployment and the highest rate, up 0.8 points at 12% of the workforce.
Slight falls were seen in Northern Ireland, London, The South West and Wales with all other regions rising.
Regional Unemployment rates (Sept-Nov)
North East: 12%
North West: 8.9%
Yorkshire and Humber: 10%
E. Midlands: 8.3%
W. Midlands: 9.2%
East England: 7.2%
South east: 6.4%
London: 9.9%
England: 8.5%
Wales: 8.9%
Scotland: 8.6%
NI: 6.8%
