UNEMPLOYMENT in Eastleigh has plummeted to its lowest level in 30 years.

New jobless figures released by Whitehall reveal that there are just 575 people claiming jobseekers' allowance in the borough - the fewest since 1975.

The news comes only a month after the Daily Echo revealed that the town's Mr Kipling cake factory is set to close with the loss of 423 jobs. Over recent years hundreds of manufacturing jobs have disappeared with the Pirelli cable-making factory in Leigh Road being swept away to make way for homes.

Catherine Wright, from the local chamber of commerce, sounded a note of caution.

She said: "These figures represent the prosperity that is widely felt across the region.

"But while it is good news, it should act as a warning signal to us all not to let up on the need to think about planning where the Labour will come from to support business growth in the area."

Council leader Keith House said: "We are delighted with the figures and have invested a lot in assisting small businesses to start up and develop but we can never be complacent with employment."

The fall in unemployment has been welcomed by Labour parliamentary spokesman for Eastleigh Chris Watt.

He said: "Figures show that nationally employment has risen and unemployment has fallen in every region and country in Britain."