The unemployment rate in Swindon for October fell to 1.6 per cent, bucking the national trend.

The number claiming benefit in the town went down from 2,412 in September to 2,279. Julie Leigh, business manager at Swindon Jobcentre, was not surprised at the figures for the town.

She said: "Traditionally unemployment drops at this time of year. However, it is earlier this time because companies have been keen to fill Christmas staff vacancies well ahead of time.

"The underlying trend for Swindon is one of a continuing drop in unemployment.''

Nationally the figure increased by 3,500 to 1,047,300 last month, surprising analysts who had forecast the lowest unemployment rate in years. The National Office for Statistics figures dented hopes that the jobless total would dip below a million by Christmas.

The NOS said there was no obvious reason for the increase, the first rise in the claimant count since November 1998. An official said it was probably an erratic variation in the figures, a statistical blip.

There were almost 28 million people in work between July and September, the highest since current records began in 1984.