UNEMPLOYMENT in Colchester has dropped to the lowest in almost decade, sparking claims business confidence in the economy is seeing a major recovery.

The number of jobless fell again to 1,411 in December – down 50 on the previous month.

Dave Cope, of Jobcentre Plus, said the town was benefiting from growing confidence, with just over 1 per cent of adults now signing on.

He said: “Colchester is a success story economically over the last couple of years.

“The last time unemployment figures were this low here was June 2005. Many people are saying we are back to where we were before the 2009 recession, but it goes back to before that.

“Like most of Essex, more than 50 per cent of businesses are looking to recruit this year, which will have a major impact on unemployment.

“That’s where we come in – our mission is to make sure unemployed people can access those opportunities.’’ Under-25s in Colchester claiming jobseeker’s allowance has more than halved, from 720 a year ago to 340.

Jobless figures were less positive in Tendring, where unemployment rose for the third month running. The number on the dole queue was up by more than 100 to 2,167 – a five per cent rise on November.

Mr Cope said: “We are a little worried about the increase but certainly aren’t panicking.

There are seasonal factors in an area like Tendring.

“Clacton is historically a little more unpredictable, which tends to be the way with seaside towns.

“There's a fairly transient population as well.’’ Almost three per cent of adults in Tendring are out of work, but the figure is still much lower than a year ago.