YORK is at "full employment" for probably the first time since the Second World War, new Government figures have shown.

The number of people claiming job seekers allowance in the city has more than halved in the last eight years - to less then 1,500.

The statistics, revealed in a research paper from the House of Commons library, show that as of August, 1,329 were claiming job seekers allowance compared with 2,906 in August 1997 - a fall of 54.3 per cent.

That led Len Cruddas, chief executive of York and North Yorkshire Chamber of Commerce, to argue that the city was now effectively in "full employment", with future prospects likely to be good.

The massive drop in people claiming unemployment was also seen throughout North Yorkshire with Ryedale, East Yorkshire, Harrogate and Knaresborough and Selby recording similar falls.

But there was caution in Selby, where unemployment benefit recipients rose 14 per cent in the last year - primarily as a result of the closure of the region's coal field.

Mr Cruddas said: "There is an employment boom. To all intents and purposes we have full employment. It is probably the first time since the Second World War.

"The downside of this is that businesses face the issue of trying to find employees with the right skills.

"I think the employment trend will continue because York and its surrounding areas still have an underlying strength in tourism and that isn't going to go away. There are also a lot of emerging sectors that are doing well."

Full employment is declared when those in the active labour force, who are willing and able to work at going wage rates, are able to find work.

York MP Hugh Bayley said: "The last Government said unemployment was a price worth paying for low inflation. This Government's hard-headed job creation policies have halved unemployment and halved inflation."

A City of York Council spokeswoman said: "The council's economic development programme works hard to develop new jobs and support local people into them.

"It is an effective programme with 3,000 jobs created

through Science City York since 1997.

"Tourism development has been strong over the same timescale with an additional £340 million annual spend since 1997 creating many jobs in hotels, restaurants, bars and at attractions."

Updated: 09:41 Friday, September 30, 2005