Dramatic fall in unemployment figures revealed

The Office for National Statistics said the unemployment rate had now fallen to 7.1% - just above the level where the Bank of England is prepared to start considering raising interest rates.

The number of people claiming jobseeker's allowance across the UK last month fell by 24,000 to 1.25 million. The figures differ because not everyone classed as unemployed is eligible to claim the jobseeker's benefit.

Across the West Midlands as a whole, the claimant count was down by 1,973 to 127,275, or 3.6 per cent - still above the national claimant rate of 2.9%. In Walsall the claimant count fell by 114 to 8,016, or 4.8 per cent of the borough's working population.

But Wolverhampton is still the hardest hit area of the West Midlands, despite a fall of 145 in its claimant count to 10,242. 6.4 per cent of the city's working people are on the dole.

In Sandwell the number of people claiming jobseeker's allowance fell by 219 to 10,817, or 5.5 per cent, while in Dudley it was down 187 to 8,001, or 4.1 per cent. In Wyre Forest and Kidderminster the claimant count fell by 41 to 1,740 or 2.9 per cent.

In Staffordshire, Cannock Chase bucked the nationwide trend with a rise in its claimant count of 15 to 1,428, or 3.3% of the district's working population.

But it was down in South Staffordshire, by 50, to 1,215 or 1.8 per cent, and in Stafford, down 42 to 1,202 or 1.4%. In Lichfield the claimant count was down by 25 to 821 or 1.3 per cent.

Nationwide the claimant count has now fallen for 14 months in a row. Meanwhile, the number of people in work has reached a record high of just over 30 million, giving an employment rate of 72.1%, an increase of 0.5% over the quarter to November.

An additional 280,000 people were in employment over the latest quarter compared to the three months to August, and up by 450,000 from a year earlier.

There was a fall in the number of people working part-time because they could not find full-time jobs - down by 12,000 to 1.4 million.

Economic inactivity - counting those who are looking after a relative, on long-term sick leave or who have given up looking for work - fell by 22,000 to just under nine million.

Average earnings increased by 0.9 per cent in the year to November, unchanged from the previous month, giving a weekly wage of £475, today's report from the Office for National Statistics showed.

Long-term unemployment has fallen - down by 61,000 to 839,000 among those out of work for over a year.

The number of unemployed 16 to 24-year-olds fell by 39,000 to 920,000.