The number of people claiming unemployment benefits in the North fell last month to its lowest level this year, according to new data.

But the Northern Ireland Minister for Enterprise, Trade and Investment, Sir Reg Empey, has sounded a "health warning" on the economy and warned that more than 2,000 redundancies are in the pipeline over coming months.

Sir Reg Empey said although unemployment levels were down 1 per cent on corresponding figures for the same period last year, there had been an increase in the number of people currently out of work, while further job losses were also expected.

The latest UK labour force statistics show that while there was a fall of 0.5 per cent or 200 people claiming benefits last month in Northern Ireland, there has also been a steep rise in the number of people registered as unemployed.

The North's textile and high-tech sectors have suffered heavy job losses in recent months.

According to the seasonally adjusted unemployment estimates for the period from March to May 2001, the figures rose by 1,000 to 47,000 people.

The unemployment rate now stands at 6.2 per cent in the North compared to 5 per cent in Britain, which is its lowest rate since records began.