Unemployment claims rose by 60,000 from April through June and added 20,100 in July, The Times of London reported Wednesday.

It was the biggest one-month leap in claims since 1992, the newspaper reported.

In April through June, Britain also added 20,000 jobs, but the rate of new employment opportunities has slowed considerably, the report said.

"It seems inevitable that extended very weak economic activity and deteriorating business confidence will exact an increasing toll on the labor market over the coming months," said economist Howard Archer of Global Insight.

Other economists agreed. Vicky Redwood of Capital Economics, said falling house prices could erode confidence and push unemployment further.

"It is only a matter of time before the resulting weakness in firms' revenues results in more widespread job cuts," Redwood said.