UNEMPLOYMENT is continuing to fall to near-record lows but more jobs are being lost in manufacturing, according to the latest figures.

The number of people claiming unemployment-related benefit fell last month for the eighth month in succession, down by 13,400 to 892,100, the lowest for nearly 30 years.

The monthly fall was the biggest since summer 2001, and the claimant count is now 40,300 lower than a year ago.

Total unemployment, including those not claiming benefit, fell by 21,000 in the three months to December to 1,459,000, the second lowest figure since records began in 1984.

In the North-East, 75,000 people were out of work in the same period with the seasonally adjusted unemployment rate standing at 6.4 per cent - down 1.1 per cent from a year earlier.

However, jobs continued to be shed in manufacturing, with 111,000 posts cut in the three months to December, compared with a year earlier.

The biggest losses were in electrical and optical equipment (27,000) and textiles, leather and clothing (23,000).

Minister of State for Work Des Browne said the UK had the strongest labour market for a generation.

But TUC general secretary Brendan Barber said: "The further fall in unemployment is welcome but the labour market is weaker than it looks.

"The number of full-time and permanent employee jobs went down and the number of people in less secure temporary jobs and self-employment went up.

"Manufacturing has yet to show clear evidence of recovery, with 5,000 lost in December alone and 105,000 in the year to December."