Unemployment increased by 5,000 to 1.34 million in the three months to January, official figures show.
The UK unemployment rate was estimated at 3.9%, 0.2 percentage points higher than the previous quarter but roughly the same as the same period in the year before.
But there was better news for people still in work - with Wage growth also accelerated during the period, increasing to 3.1% growth from 2.9% in December according to the Office for National Statistics.
UK employment rose 183,000 to 32.99million overall to set another record high. Analysts had forecast that employment would increase by 143,000 in January.
But experts warned the good news was woefully out of date.
Pawel Adrjan, UK economist at global job site Indeed, said: “There’s more than a touch of Alice in Wonderland about these jobs figures.
"They paint a broadly rosy, but now hopelessly outdated, picture of a labour market which is having to adapt to a completely new reality."
David Freeman, ONS head of labour market statistics, said: "Today's figures show continuing record employment but also a slight rise in unemployment on the year - for the first time since early summer 2012.
"This is because we also see a record low rate for people neither working nor looking for work.
"Meanwhile, vacancies have continued to rise after recent falls, with more now than at any time in the last six months."
Adrjan pointed out that this was, though, probably as good as it would ever get.
“January’s joint record high employment rate and the record low inactivity rate - two metrics which show a labour market in rude health - are now likely to be high water marks," he said.
Jeremy Thomson Cook, chief economist at currency firm Equals said: "There is little point in attempting to forecast how deep and long such a trough will be; there is almost no way to know but we would have to hope that government support is made available in a timely manner.”
But there are some things it's safe to assume.
Sarah Coles, personal finance analyst, Hargreaves Lansdown, said: "Jobs in pubs, restaurants, hotels and other venues are at risk, airlines are warning of massive job losses, shops are under increasing pressure, and small businesses are laying off staff wherever they can, in an effort to keep going.
"For the 15% of the workforce who are self-employed, the prospect of losing work and getting ill without sick pay is particularly alarming."
There was still hope for people looking for work, though - but in different sectors.
Adrjan said: “The types of jobs employers are recruiting for have changed, as the economy adapts to the challenges imposed by the coronavirus.
“Perhaps unsurprisingly there has been an unseasonal fall in vacancies in the hospitality and travel sectors - two areas most immediately impacted by the virus restrictions.
“Conversely there has been a surge in job postings for delivery drivers and warehouse workers - as retailers restructure their supply chains to take food and goods direct to the thousands of people now spending more time at home."
