The North East Chamber of Commerce said it was "surprising and worrying" that the unemployment rate has risen above 10% again in the North East, after a growth in employment throughout 2012.
The organisation, which represents local businesses, said in a statement that employment and unemployment statistics were "heading in the wrong direction" and called for efforts to "ensure that skills levels are improved to help people back into work."
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A dry day with bright or sunny spells. Rain comes through overnight into Sunday morning, before drier yet fresher weather develops
A look ahead at the forecast for the Tyne Tees region.
A businessman who ran three international export companies from his County Durham home has been jailed after an investigation by HMRC