Unemployment fell again in Oxfordshire last month as the number of people on the dole nationally plunged to a 19-year low, writes David Duffy

The number of people out of work in the county fell by 68 to 4,875, a percentage rate of 1.5 per cent - one of the lowest in Britain.

A breakdown of the figures showed in Oxford city there were 2,011 people out of work (2.0 per cent); Cherwell 879 (1.4); South Oxfordshire 786 (1.3); Vale of White Horse 699 (1.2) and West Oxfordshire 500 (1.1).

Nationally, new figures surprisingly showed a record number of people in work and a fall in the average number of hours being worked. But the good news for the Treasury on jobs was marred by an increase in average earnings of 4.8 per cent in the year to March, up by 0.2 per cent from February's figure.

Earnings growth in private firms is running at five per cent - twice the rate of inflation. In a speech last night, the Chancellor Gordon Brown called for pay restraint.

The claimant count fell by 17,400 last month to 1,290,700, 4.5 per cent of the workforce and the lowest level since the summer of 1980. The count fell for both men and women and in all regions of the country - surprising analysts, who had expected another increase in line with recent trends.

The rise is being driven by job creation in the service industries, while employment in manufacturing is still falling - down by 135,000 in the first three months of the year compared with a year ago.

A Treasury spokesman said: "Continuing the trend of recent months, these figures show continuing increases in employment, with record numbers in work."

Story date: Wednesday 19 May

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