THE NUMBER of people claiming jobless benefits in Northern Ireland rose by 3,100 last month to 34,100 - the largest rise in almost 30 years.

The massive rise in the number of people claiming unemployment support has been driven by the continuing slowdown in the North's economy, which has sparked redundancies across all sectors.

Latest Government figures show that more than one-third of the people who claimed financial help for the first time during November had previously worked in the construction sector in Northern Ireland.

According to the official labour market statistics, the seasonally adjusted unemployment rate in the North - for the period August to October 2008 - stood at 4.3 per cent.

This compares to the average UK rate, which rose to 6 per cent in the same period, and to the European Union rates, which currently stand at 7 per cent.

Currently an estimated 1.86 million people are out of work in the UK - the highest level since 1997. Official statistics show that a further 137,000 people joined the ranks of the unemployed in the three months to October of this year.

The December labour market statistics for Northern Ireland show that, as well as a rise in the claimant count, there has been a sharp fall in the number of people in employment.

There was an estimated net decrease of nearly 7,000 jobs over the quarter - the largest fall in 28 years.

Government statistics show that more than 4,000 jobs were lost in the service sector in the last quarter, 1,120 were axed by manufacturing firms and 1,600 jobs went in the construction sector.

AVX in Coleraine yesterday became the latest manufacturer in the North to announce job cuts. The Japanese-owned company, which manufactures and supplies electronic components, intends to cut 92 jobs due to a downturn in orders.

Earlier this week, the car components group Ryobi also confirmed its intention to axe 99 jobs at its plant in Carrickfergus.