UNEMPLOYMENT has fallen in Wales - but there has been a rise in the number of those claiming jobseekers' allowance.

New figures published today by the Office for National Statistics showed that across the principality there were 10,000 fewer people out of work compared with the previous quarter.

However, the claimant count in Wales has risen by 100 in the past month to 70,300 - enough to nearly fill Wales' Millennium Stadium.

Westminster officials describe the fall in UK unemployment, including youth unemployment, as "welcome news".

But, with the UK Government continuing to press ahead with its budget deficit reduction programme, economists warn that unemployment is likely to rise over the coming months.

Howard Archer, chief UK and European economist at IHS Global Insight, has forecast the number of jobless to increase to 2.67 million by the end of this year.

He said: "We suspect below-trend growth will mean the private sector will be unable to fully compensate for the increasing job losses in the public sector that will result from the fiscal squeeze that is now really kicking in.’’