UNEMPLOYMENT figures painted a grim picture for the region yesterday, with statistics showing that the jobless total had risen by almost 20 per cent in the past three months.

Figures from the Office for National Statistics (ONS) showed that the total number of people out of work had risen by 15,000 to 81,000 - 6.7 per cent of the region's population, or one in 15 people - between April and June.

But the more reliable claimant count figure from the ONS - or the number of people claiming benefits - had only increased by 0.1 per cent from last year.

Unions and business leaders last night said they were perplexed by the figures.

Andrew Sugden, director of policy at the North-East Chamber of Commerce, said the findings did not concur with the chamber's quarterly surveys, which showed that business confidence was good and many members were even considering taking on extra staff.

He said: "The region has enjoyed many months of falling unemployment, but the recent data suggests this trend has reversed.

"This dramatic rise in official figures doesn't reflect the relatively buoyant picture of our own surveys.

"However, if the picture from the ONS is true, it is deeply concerning. We can only hope that the surveys we have carried out are a true reflection rather than these figures - otherwise the North-East is going to get a shock."

But he added the North-East figures had the potential for error, because of the way the figures were worked out.

Julie Elliott, regional officer with the GMB union, said the figures did not concur with recent events. She said: "That doesn't seem right to me. There have been job losses, yes, but nothing on that scale."

Gerry Hunter, of the Amicus trade union, said: "If those figures are right, we are on the brink of a recession. But I can't think of anything that could push the figure up by 15,000 in just three months."

Across the UK, the number of people claiming Jobseeker's Allowance rose for the sixth month in a row - the longest stretch of increases in nearly 13 years. The claimant count rose by 2,800 in July to 866,000, an increase of 27,800 from a year ago.

Total unemployment, including people not eligible for benefit, rose nationally by 27,000 over the quarter to June to 1.42 million. The rise affected mainly women.

Wage growth in the public sector was 5.6 per cent, including bonuses, unchanged on the month, while the private sector saw wages grow by 3.8 per cent, also unchanged.

Manufacturing job losses continued, with employment in the sector falling to 3.2 million in the three months to June. This represented a total fall of 86,000 on the same period a year ago.

A spokesman for regional development agency One NorthEast said the statistics contradicted other studies.

He said: "The fact that our employment levels have remained the same at 70.5 per cent from last year and that there has been a steady growth from previous years also would suggest that this 15,000 increase is not all coming from the employed pool of people but from new claimants who could have moved from the incapacity benefits register.

"Of course, there have been job losses in the last six to eight months with LG Philips Displays and Ellington Colliery announcing closures, but the majority of people affected by these closures have been or are being helped to find employment."