ONE in four of the working population in East Lancashire is living off benefits or shunning work, shock figures have revealed.

Thousands of people across the area have been classed as "economically inactive" - meaning they are too sick to work or do not want a job.

The hidden' rate of unemployment is higher in Burnley, Pendle and Rossendale than the rest of the North West. Official unemployment figures across the region vary between five per cent and six-and-a-half per cent, with Ribble Valley measuring just 2.4 per cent.

But when those on sickness benefits and those who simply don't want a job are taken into account, the proportion out of work rockets, statistics show.

Coun Gordon Birtwistle, leader of Burnley Council, said: "The problem we have in Burnley is the Goverment has taken all of our proper jobs so we are left with low-skilled, low-paid positions.

"People are caught in a vicious trap because at times they will get more from the state for staying at home than they will by working.

"We are endeavouring to change this, with the help of the North West Development Agency, by building the new college and university campus in Burnley, to give people the skills they require, and by trying to attract new hi-tech businesses."

The figures are revealed in new statistics on levels of economic inactivity where the national average is 21.6 per cent and the North West's is 23.3 per cent.

Burnley has just under one in four (23.9 per cent) out of a potential workforce of 53,000, on the jobs scrapheap.

There is a thriving benefits culture too as there are around 8,000 on incapacity, carers or disability payouts.

Pendle shows a similar picture - with 13,000 people (24.2) dubbed inactive' out of a working population of 54,000 and nearly 7,000 on various benefits.

While Rossendale has less on job seekers allowance and benefits generally, the inactive' ratio is still just under one in four at 23.3 per cent, out of 41,000 would-be workers.

In Blackburn alone 9,870 are on incapacity benefit and 19,200, or 28 per cent, are not actively seeking work.

While this could include housewives and students, and those who have taken early retirement, it also includes a fair proportion those who actively don't want a job.

The trend is more marked in Hyndburn - from a working population of 48,800 just under a third (30.4 per cent) are deemed economically inactive'.

Only Ribble Valley has anything to celebrate - the number of benefits claimants are 10 per cent fewer than the regional average.

Philip Hammond, Shadow Chief Secretary to the Treasury, said the amount of people of working age not in employment represented a huge pool of wasted talent'.

He added: "Many of these people could work, and would want to work, if given the right incentives and support."

But a spokesman for the Department of Work and Pensions said: "Economic inactivity includes everyone of working age who is not in employment and not seeking work, and students fall into this category.

"Excluding students, inactivity has fallen nationally by 140,000 since 1997 and the rate has fallen by 1.4 per cent."