But unemployment nationally has increased and the number of people claiming Jobseeker's Allowance has risen at the highest rate for two years.

The so-called claimant count went up by 7,200 in March to 806,300, the third consecutive monthly rise and the biggest monthly increase since April 2006.

The last time the count rose for three months in a row was two years ago, said the Office for National Statistics.

The total number of unemployed, including people not eligible for benefit, increased by 14,000 in the three months to March to 1.61m, the highest since the end of 2007.

The last time both sets of jobless figures increased at the same time was September 2006.

Manufacturing jobs continued to reach a record low, down by 27,000 in the latest quarter to 2.9m compared with a year ago, the worst since comparable records began in 1978.

Despite the increase in unemployment, the number of people in work increased by 117,000 in the three months to March to 29.54m, a record high, reflecting an increase in the working-age population.

Average earnings increased by four per cent in the year to March, up by 0.3 per cent on the previous month.

The number of people classed as economically inactive, including those looking after a sick relative, people who have taken early retirement or who have given up looking for work, fell by 33,000 in the latest quarter to 7.88m, 20 per cent of the working age population.

There were 67,000 working days lost through industrial disputes in March, the highest since last December, taking the yearly total to 982,000 - three times higher than the year to March 2007.