UNEMPLOYMENT in Wales has fallen by 9,000 in the three months to April, official figures have shown.

The unemployment rate is now 7.9%, compared with a UK average of 7.7%.

It means other areas of the UK such as north east England, Yorkshire and Humber and the west Midlands have significantly higher unemployment rates than the principality.

But the number of people claiming jobseekers' allowance in May rose by 1,700 to 72,400 - a rate of 5.1%.

Welsh Secretary Cheryl Gillan described the figures as encouraging.

She said: "These figures are encouraging and show the Government's economic policies are working in Wales.’’ Today's figures - issued by the Department for Work and Pensions - show unemployment in Wales stands at 115,000, down 9,000 on the previous quarter.

The statistics also showed employment rose 19,000 during the quarter, putting total employment at 1,349,000.

And the number of people classed as economically inactive fell 10,000 in the period. There are now 480,000 people of working age in Wales who are economically inactive.

Mrs Gillan, added: "However, we still face a challenge to help more of the long term unemployed into work. Last week we announced the new Work Programme is now up and running and will provide tailored support for more people on benefits, including those in Wales.

"Tackling the long-term problem of unemployment cannot be done in isolation and it is vital the Welsh Government at the Assembly works proactively with the UK Government to create the right conditions for job creation and economic growth in Wales.

"This includes the development of Enterprise Zones and other initiatives which will stimulate private sector investment.’’ Earlier today, the Welsh Government announced it was to re-launch a support scheme to help businesses affected by the Japanese earthquake.

Under the re-opened ProAct scheme, £4 million will be available to companies which have introduced short-time working because of disruption caused by the earthquake.