A software services provider is to create up to 750 jobs at a Derry call centre. Stream International said it would recruit 450 people in the sort term following agreement of a significant new contract, making it the second-largest employer in the city.

The company has an office in the Ulster Science and Technology Park on the west bank of the Foyle and will site the new jobs across the river on the Waterside. Manager Jeff Jennings said a wide range of skills were required at the centre, which will provide customer support for a broadband service.

"We're looking for a broad range of people so it's not going to be all technical support like the jobs in the past within Stream," he said. "We will be looking for people with good customer services experience and from all age groups - people with good empathy - now we are starting to chase the silver surfers, as they call them, the older people getting into broadband."

The investment was welcomed by both the SDLP and Sinn Féin.

The announcement follows the news of a further drop in Northern Ireland unemployment totals.

The seasonally adjusted unemployment rate of 4.2 per cent for the period March to May was slightly down on the 4.6 per cent of the previous quarter and 4.5 per cent one year ago.

The Department of Enterprise, Trade and Investment estimated there were 35,000 people unemployed, down 3,000 on the previous quarter and 1,000 on the year.

The total of those in work is now estimated to be 786,000 - up 19,000 or 2.4 per cent on the quarter, and up 26,000 or 3.4 per cent on a year ago.

Minister for Enterprise Nigel Dodds said the statistics reflected the improving state of the labour market.

"Employment levels continue to rise while unemployment levels are consistently low. The Northern Ireland unemployment rate has remained below the 5 per cent mark for over two years and the current rate is the second-lowest among the UK regions."

Separately yesterday, members of the Assembly enterprise, trade and investment committee, which monitors Mr Dodds's department, formally called for a cut in the North's levels of corporation tax, which are well ahead of those in the Republic.