UNEMPLOYMENT rates have risen to their highest levels since 2002 - but in the North-East, the number of people out of work dropped in the first quarter.

While the Office for National Statistics (ONS) figures showed unemployment was 5.2 per cent in the three months to March, the highest since November 2002, the North-East rate dropped to 6.7 per cent - down from seven per cent in the three months to February.

Unemployment in the region fell by 3,000 to 82,000 - but the North-East still has the highest rate outside London.

Nationally, the number of people claiming unemployment benefit also rose to its highest level for nearly three years.

The ONS said the claimant count rose by 7,700 in April to 945,500.

It was the highest number of people on jobseeker's allowance since June 2003 and means that the number has risen for 13 of the last 14 months, the longest period of increases since the recession of 1992.

But the ONS said the total number of people in work was 28.9 million, the highest level since records began in 1971.

Total employment rose by 127,000 in the quarter and 217,000 over the year.