More than 5,000 people living in Hammersmith and Fulham are now claiming Jobseekers' Allowance, a rise of more than one fifth on the previous year.

Figures released by the Office for National Statistics show that in January, some 5,352 of the borough's residents – or 4.3 per cent of its population - claimed unemployment benefits, up from 3.3 per cent at the same time in 2009.

The statistics also reveal that two thirds of the borough's registered unemployed are men.

Nationally, exactly the same proportion of people are out of work, and across the whole of London the figure is slightly higher at 4.4 per cent.

Most neighbouring boroughs fared slightly better, with just 2.9 per cent of the population unemployed in Kensington and Chelsea, 3.3 per cent in Wandsworth and 3.8 per cent in Hounslow, although in Brent nearly 10,000 people do not have jobs and the unemployment rate is significantly higher at 5.3 per cent.

The borough with the highest rate of joblessness is Hackney with 6.9 per cent.

The figures came in the same week that foreign secretary David Miliband told an audience at St Paul's Church in Hammersmith that creating employment is an essential part of building a stable community.

And the Federation of Master Builders this week claimed 24,000 jobs could be created in the construction industry by cutting VAT from 17.5 per cent to just five per cent for labour costs relating to home improvements and repairs, including those carried out to social housing through the Decent Homes programme.

A report from the Cut the VAT Coalition claimed that such a move would give a £1.4 billion boost the country's economy this year, with better insulated homes also leading to dramatic cuts in carbon emissions.

Richard Diment, director general of the Federation of Master Builders, said: "House building in the UK is at its lowest level since 1946 so building zero carbon homes will have a limited impact on the UK's carbon emissions, especially considering the existing housing stock is responsible for 27 percent of total emissions.

"A more effective way to reduce carbon emissions would be to 'green' the existing housing stock. Cutting VAT would mean that many more home-owners could afford to have their homes retrofitted, which would also create savings for them on energy bills, leading to a reduction in fuel poverty."