A SHARP increase in the number of people in work has been heralded as "great news" - despite unemployment in the region also rising.

Official figures show the number of North-East workers rose by 15,000 in the three months to May and 69,000 over the year to 1,190,000.

The North-East now has an employment rate of 69.9 per cent, compared to a national rate of 73.1 per cent.

Welcoming the increase, North East Chamber of Commerce policy and research manager, Mark Stephenson, said “Currently, we have more people in employment in the North-East than we’ve ever had, which is great news."

Mr Stephenson said the North-East employment rate had consistently been among the fastest improving in the UK, while the reduction in the inactivity rate was the highest in the UK.

However, union leaders said a quarterly rise of 5,000 in the unemployment figure showed there was little sign of the economic upturn in the region.

North-East unemployment stood at 129,000 or 9.8 per cent – a rise of 5,000 over the quarter but a fall of 4,000 over the year.

Gill Hale, Unison regional secretary, said: “Yet again the North-East has seen its unemployment figures grow by another 5,000 continuing our trend of being the region with the highest level of unemployment in the country.

"The North/South divide continues when you compare our figures to those of the South-East where their unemployment level is 4.4 per cent.

"Despite what the Government says about an economic upturn there is little evidence of it in this region. These figures are not just statistics but individuals that are really struggling.”

The Northern TUC said that behind the headline figures there was a 7,000 decrease in male unemployment but a 12,000 increase in female unemployment.

Neil Foster, policy and campaigns officer for the Northern TUC, said: “The biggest concern from these figures should be the how women in our region are losing out and paying the highest price for George Osborne’s slash and burn approach to public services."

Nationally, UK unemployment fell by 121,000 to 2.12 million over the quarter - its lowest for nearly six years, figures from the Office for National Statistics revealed.

Experts said the employment rate and unemployment rate could both increase if a large number of people entered the jobs market who were unable to find work.