Figures from the Office of National Statistics show that the number of people claiming unemployment benefit in the county dropped by 2.2% over the last month while national figures fell by just 0.7%.

However, the year-on-year statistics showed that the county is lagging behind the rest of Britain in cutting unemployment by 8.6% compared to the UK average of 11.8%.

Babs Murphy, chief executive of the North and Western Lancashire Chamber of Commerce, said: "Our sustained job gains and falling unemployment rate demonstrate the underlying strength of the Lancashire economy.

"However, despite the good news there remains a substantial number of people registered as unemployed, often concentrated in specific localities.

"At the same time, the chamber's recent skills survey points to a number of employers with hard-to-fill vacancies.

"We are now in the credit crunch and the challenges are here, but the evidence is that we are weathering things well at the moment."

The 0.4% decrease of just eight people in Preston was the second-lowest in the county leaving the city with 2,191 people claiming benefit, an increase of 2.6% on last year, and the third-highest in Lancashire behind Blackpool (3,091) and Blackburn with Darwen (2,258).

South Ribble saw a 1.3% annual increase to 871 people, while Lancaster rose 1.8% to 1,641 people.

Wyre rose 1.3% to 836 people, and Ribble Valley stayed the lowest with 237 people, slightly up on last year.

More people claimed benefit in the Preston ward of Ribbleton (288 people or 6.7% of the population) than the entire Ribble Valley with both Ribbleton and neighbouring St Matthew's ward (218 people) had claimants three times the county average.

>> Vote in our latest web poll