Unemployment in the region fell by 7,000 to 74,000 in the three months to November.

Despite the fall, reported in figures from the Office for National Statistics, the total is still the highest figure outside London, where unemployment has risen to 291,000, or 7.5 per cent of the population. The jobless total for the North-East equates to 6.2 per cent of the population.

Nationwide, unemployment increased by 111,000 to 1.53 million, its highest for three years.

There was also an increase in the number of people classed as "economically inactive", including those looking after a relative, students or people who have given up looking for a job.

The figure rose by 25,000 during the quarter to 7.94 million, its highest since records began in 1971.

George Cowcher, chief executive of the North East Chamber of Commerce, said that to get a clear picture of the figures, it was neccessary to compare changes year on year.

He said: "The number of people in employment in the North-East has risen 16,000 over the past year, while the claimant count has also gone up by 2,800. Meanwhile, the total number of unemployed people has stayed constant at 74,000.

"There has been jobs growth in the North-East in the past year.

"However, the challenge still remains to give people on long-term unemployment and those who are currently inactive the chance to join the labour market.

"This will only be achieved by giving people the right skills for the jobs that are already available and to create more prosperous businesses that in turn will provide more opportunities for those out of work to find the right employment."