THE number of people in the North-East who work or want to work has gone up - closing the gap on the national average.

Figures from the annual Labour Market Summary for last year show that the percentage of people in some form of work, unemployed, or on a Government scheme - otherwise known as the region's economic activity rate - is at 76 per cent, or 1,159,200 people of working age.

The rate has risen from 74.4 per cent in 2004, and is now 2.4 per cent below the national average.

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The yearly summary is produced by the North East Regional Information Partnership (NERIP).

Other key points include:

* The region's employment rate continued to rise to 70.7 per cent;

* The region's unemployment rate rose for the first time since 1999, to 1.5 percentage points above the national average;

* The number of people claiming incapacity benefit has continued to fall - hitting 160,300 in 2006, compared to 180,700 in 2001;

* The number of people stopping their claims for Job Seekers' Allowance increased 4.2 per cent on the previous year;

* The number of economically inactive people, such as the permanently sick, people with disabilities, or people who have taken early retirement, has decreased by 24,500 people over the last two years to 366,100.

Head of NERIP Jon Carling said: "Whilst the unemployment rate rose in 2006, this followed the national trend and, as employment rates haven't decreased, doesn't mean more people are moving out of work.

"It actually reflects an increase in economic activity as more people stopped claiming incapacity benefit and looking after homes and families, to become willing and able to work."

ENDS