THE number of people claiming unemployment benefit increased by 5,400 last month, while the steady loss of manufacturing jobs continued.

The claimant count stood at 953,000 in April, the highest figure of the year, giving a jobless rate of 3.2 per cent.

However, the Govern-ment's preferred International Labour Organisation (ILO) total, which includes people not eligible for benefit, fell by 19,000 between January and March to 1,540,000.

In the North-East, ILO unemployment fell by 3,000 to 88,000, while in Yorkshire and Humberside it fell by 1,000 to 123,000.

Nick Brown, Minister for Work, said there were 172,000 more people in jobs than a year ago and pointed out that the claimant count had fallen in Northern regions of the UK.

He said: "Overall, employment has risen while unemployment has remained flat throughout the current global economic uncertainty."

John Irwin, president of the North-East Chamber of Commerce, said: "The gap between unemployment in the region and the rest of the UK has narrowed over the last 12 months.

"A concerted effort must now be made to reduce the deficit further by encouraging greater inward investment in the regional economy."