UNEMPLOYMENT fell 10,000 to 123,000 in the three months to April, official figures revealed today.

Wales saw the biggest percentage fall in the unemployment rate among the nations and regions during the quarter, dropping 0.7 per cent to 8.5 per cent.

But the figure is still bigger than the UK-wide rate of 7.9 per cent.

The number of people claiming jobseekers allowance also fell during May, by 1,800 to 72,500.

Deputy First Minister Ieuan Wyn Jones said the Assembly Government "remains cautious" about the volatility of unemployment statistics.

"The Welsh Assembly Government will continue to do all it can to aid the recovery with the levers we have at our disposal," he said.

"Only this week we announced a £2.4 million project to get 840 jobless people in Neath Port Talbot back into work.

"Next month we will publish our Economic Renewal Programme that will set out a new approach to supporting businesses and developing the right skills of our workforce so we can compete in the global economy.

"It is the duty of all levels of government not to take actions that could jeopardise this fragile recovery."

Welsh Secretary Cheryl Gillan, due to make her first appearance in the Senedd today, said: "I welcome the fall in unemployment in Wales but it remains unacceptably high and we must never forget the individuals behind these figures.

"For anyone who loses their job, it is heartbreaking for them and their families.

"The coalition Government is committed to offering a new solution to these problems through the single welfare to work programme to replace existing schemes and help all unemployed people get back to work as quickly as possible."