THE North-East will be in the “eye of the storm” as recession decimates British industry, according to a study.

Figures from The Work Foundation name four North- East areas in the top 20 hardest-hit as the unemployment rate rise.

Busy cities show the highest number of unemployed people, but a breakdown of the population percentage claiming jobseeker’s allowance paints a bleak picture of the North-East.

Sedgefield, Wear Valley, Easington and Sunderland – areas that rely heavily on large manufacturers – have seen a sharp rise in numbers claiming in the past 12 months.

Wear Valley tops the list of 409 areas, with the dole queue more than doubling since February last year.

Sedgefield, home to the region’s second largest industrial estate, in Newton Aycliffe, is eighth with a 103 per cent increase in claimants.

Factory closures and cutbacks by big employers are thought to be behind the rise.

Naomi Clayton, from independent group The Work Foundation, said: “Places in the eye of the storm as job losses mount are the UK’s core cities and areas associated with traditional manufacturing – places which in many cases had yet to recover fully from previous recessions before this one set in.

“In terms of absolute numbers of new people signing on for jobseeker’s allowance, it is the core cities of the North and Midlands that are worsthit.”

The region’s industry has been dealt a series of blows, including the closure of Electrolux, in Spennymoor, where 500 manufacturing jobs were lost last year, and Nissan’s announcement in January that 1,300 people would go at its Sunderland factory.

Darlington, Derwentside, Gateshead, South Tyneside and Hartlepool were also among the 100 worst-affected.

Darlington has seen a 68 per cent rise in claimants in the past year, according to the study.

Andrew Sugden, of the North-East Chamber of Commerce, said unemployment was rising in County Durham more than in the rest of the North-East, but that there were glimmers of hope.

He said: “County Durham has sustained a number of shocks in the last 12 months.

“We do know that there has been some solid investments made in the county, significantly Thorn Lighting, and we know there are others planned so, hopefully, Durham will be able to capitalise faster on any recovery.”

Sedgefield MP Phil Wilson said: “I am obviously very concerned.

“The last recession is different to the one we are going through now. We had 6,000 people out of work, whereas now we have about 2,500.”

Durham County Council chairman Brian Myers, a county councillor for Willington, said: “These figures are particularly disappointing for Wear Valley.”