The number of people unemployed in Watford rose by 120 in September compared with the same month last year, latest figures show.

A total of 1,862 people - 1,191 men and 671 women – claimed Job Seeker’s Allowance compared with 1,742 at the same time in 2010.

The figures, published by the Office of National Statistics this month, show a rise of 24 on August, when 1,838 individuals were claiming JSA.

The statistics mean that 3.2 per cent of the town’s population is currently out of work, a 0.2 per cent rise on last year.

Chairman of Watford and West Herts Chamber of Commerce Roger Gagan described the news as disappointing but pointed out that Watford’s unemployment levels are still below the national average.

He said: “At the start of the year the economy was growing but that has now petered out. People’s budgets are being squeezed, they are spending less and so there are less jobs about - we are all worse off.

“Watford is traditionally a place of high employment. We’re doing better than the rest of the country but it is still too high.

“Whilst I wouldn’t say things are going to get worse before they get better, these are difficult times. All of our costs are getting bigger but pay rises, if you are lucky enough to get one, are not keeping up with that.”

In Three Rivers, 1,142 people claimed JSA during September – a more moderate figure compared with 1,565 in Hertsmere and 2,512 in Dacorum.

Those numbers equated to 2 per cent, 2.5 per cent and 2.7 per cent of the respective populations.

Nationally 3.9 per cent of the population claimed JSA in September, while 3.1 per cent of the East of England region was unemployed.