UNEMPLOYMENT in York has fallen to its lowest level since September 2008.

The number of people claiming Jobseeker's Allowance (JSA) in the city decreased by 122 between September and October to 2,195 - or 1.6 per cent of those eligible.

The figure is down by 872 since October last year and contrasts with the regional average of 3.9 per cent and a national average of 3 per cent.

Latest statistics also show there were 1,504 unfilled Jobcentre vacancies in York last month.

York council leader James Alexander claimed council investment in the economy was beginning to pay off as York outperformed the country in tackling unemployment. “York is approaching pre-recession levels of unemployment since the global economic crash in 2008,” he said.

However, he claimed the unemployment figures masked the issue of in-work poverty, exacerbated by cost of living increases in housing, energy and childcare and he would soon be meeting Alan Milburn, the Government’s poverty tsar, to discuss such issues.

In North Yorkshire, the number of claimants fell by 107 to 6,407, or 1.7 per cent of those eligible - more than 2,000 down on the 8,564 claiming in October last year.

In East Riding of Yorkshire, the number fell from 5,293 to 5,208 or 2.5 per cent of those eligible, down by more than 1,400 since October last year.

In the Selby district, numbers fell by 70 from 1,150 to 1,080, while in Ryedale, the number rose by three to 494.

Nationwide, the unemployment rate dropped from 7.8 per cent in the three months to June to 7.6 per cent – its lowest level in four years – in the quarter ending in September.

The drops means Britain’s jobless rate is edging closer to the 7 per cent level that will prompt the Bank of England to consider higher borrowing costs.