UNEMPLOYMENT in Northern Ireland dropped by 3,500 last month to 70,800, the lowest level, in 16 years. According to the latest statistics, the seasonally adjusted jobless total in the North now stands at 9.2 per cent of the workforce. The unadjusted total, was 70,840.

The North's economy Minister, Baroness Jean Denton, said she was delighted with the statistics. "One year on from the ending of the IRA ceasefire, these figures again emphasise that Northern Ireland means business."

She added that every area in Northern Ireland had shared in this achievement. "Over the year the numbers of youth and long term unemployment have dropped significantly." However, community groups have accused the British government of "manipulating the statistics" through the use of the new jobseekers' allowance.

Under the new rules, claimants have to apply for virtually any within weeks if they cannot get a job of their choice in their own, area of training or skills. It is accepted that the jobseekers' allowance has stopped a number of people both working and claiming unemployment benefit. However, community groups say it is forcing people to take jobs at wages as low as £2 an hour, below "the poverty line".

Mr Joe Donnelly, an economic development officer with the Short Strand Partnership in east Belfast, said the figures would be welcome if they indicated that jobs were being created. But in the Short Strand area, "the jobless rate is about 75 per cent", he said.