ONE of the region's business leaders said last night the North-East's unemployment problems stemmed from a hard core of largely unskilled, long-term unemployed.

George Cowcher, chief executive of the North-East Chamber of Commerce, which represents thousands of businesses in the region, was speaking after official figures showed unemployment rose across the region for the tenth month in succession.

The unemployment rate rose to six per cent - the highest in the country outside London.

About 70,000 people in the region are now out of work - 6,000 more than three months ago.

Mr Cowcher expressed concern that the region's economy was failing to keep pace with the rest of the UK.

He said: "It is disappointing to see that national unemployment has fallen and yet figures for our region have levelled out.

"We have made great strides in this region to drive down unemployment but we appear to have reached a plateau.

"We are now left with this hardcore of largely unskilled, long-term unemployed people for whom it is difficult to find work.

"We will continue to work closely with organisations such as the Learning and Skills Council to give people the skills they need to return to work - but we must be sure that any skills assistance we give is demand-driven."

Unemployment rates in the rest of the UK range from 3.5 per cent in the East to 5.4 per cent in Scotland, and 7.1 per cent in London. In Yorkshire and the Humber, the number of unemployed rose by 2,000 to 4.5 per cent.

Across the UK, the number of people unemployed but not looking for a job increased again, and wage growth rose.

The Government received a pre-Christmas boost as the employment level nationally increased by 55,000 during the quarter to October to 28.44 million, the highest total since records began in 1971.

The number of manufacturing jobs in the UK fell by 112,000 to 3.26 million in the three months to October, compared with a year earlier.

The biggest cuts were at textiles, leather and clothing companies, and the number of people working in the industry is now the lowest since records began in 1978.

Pam Eccles, executive director of Learning and Skills Council Tees Valley, said: "The Learning and Skills Council wants to give greater prominence to the requirements of employers and individuals in our planning and funding of learning.

"Learning that responds to employers' needs can address the skills gaps we have in this area.

"This approach can encourage employers to address the development needs of their employees, which can be delivered in a way that suits the needs of both the business and individuals - at the right time and in the right place."