I’m beginning to forget which season we’re in. I know it's August, but the view from my window – a mix of sunshine, showers and blustery wind - is more reminiscent of April or September.

Bank of England governor Mervyn King is in a meteorological mood today too. I’ve just been watching the quarterly inflation report press conference. The governor opened by saying, “It may still – just – be summer, but there is a feeling of chill in the economic air.” You bet there is, Mervyn – and there was little else in what he had to say to warm me up.

According to the governor the economy is going through a painful adjustment that cannot be avoided. Economic growth is likely to stagnate over the next year with the rate of inflation set to reach five per cent before falling back again. And just how much pain is to be expected also became clearer today in the latest labour market figures from the Office for National Statistics (ONS). These show a 60,000 rise in the number of people out of work and looking for a job in the three months to June. There were also 20,000 more people claiming jobseeker’s allowance in July – the biggest monthly increase since 1992.

This is easily the weakest set of labour market data since the credit crunch began. Employment growth has ebbed to a trickle – indeed, employment has fallen in several regions of the country - while the rise in unemployment is gaining momentum. The impact of the economic slowdown is also becoming more widespread. Nearly every sector of the economy is posting fewer job vacancies. This is particularly evident in those parts of the private sector that, until recently, were major centres of job creation such as shops, hotels and restaurants, finance and business services, and construction. And there is a clear sign that redundancies are on the rise as well.

Moreover, these figures only tell us what was happening to the jobs market until mid-summer. Worryingly, the latest CIPD/KPMG/Ipsos MORI Labour Market Outlook survey – published earlier this week - indicates that the situation will continue to deteriorate in the coming quarter. By the end of the year it is likely that the level of employment will be falling across the country and unemployment rising at an accelerating pace as the number of people claiming jobseeker’s allowance climbs back toward 1 million for the first time this decade. Chillier times indeed.