THE number of people out of work and claiming benefits has risen by its biggest amount since the economic slump in 1992, figures showed yesterday.

The so-called claimant count jumped by 14,600 last month to 919,700, the biggest monthly rise since December 1992 when the country was emerging out of recession.

The total number of people out of work rose by 37,000 in the three months to January, to 1.53 million, according to the Office for National Statistics.

In the North-East, unemployment figures increased by 2,000 in the last quarter to 81,000 or 6.7 per cent of the region's population.

Andrew Sugden, North-East Chamber of Commerce policy director, said: "This is a worrying sign and there are a number of high-profile businesses that have shed staff recently.

"However, the North-East picture largely mirrors the national trend and this region has shown in recent months it has an increasing capacity for economic growth."

Nationwide, employment fell by 7,000 in the latest quarter to 28.8 million, while the number of people classed as economically inactive rose by 65,000 to 7.96 million - the highest figure since comparable records began in 1971.

Jobs continued to be lost in manufacturing firms, down by 111,000 in the latest three months compared with a year ago to 3.08 million, the lowest since records began in 1978.