But he warned that that recovery remains fragile and that the policies of the new Government could still put it at risk.

In figures released by the Office for National Statistics yesterday, the percentage of the working age population claiming Jobseeker's Allowance in the Wrexham constituency in June was 3.8 per cent. This was the fifth month in a row in which the claimant count had fallen and the lowest claimant count since the previous February.

Mr Lucas said: "We are not out of the woods yet, but this is heartening news.

"Economic changes do take some time to work through to employment rates - the rise in claims for Jobseeker's Allowance did not peak until several months after the banking crisis in 2008. These figures seem to show that the measures which Labour had put in place to deal with the economic crisis were having an effect here in Wrexham.

"Sadly, however, several of those measures - including the Future Jobs Fund, which was proving a real success here - have since been scrapped by the Liberal Democrats and Conservatives.

"We are some seeing some encouraging signs from the private sector - such as the latest news that JCB is looking to take people on once more at its Wrexham plant.

"However, that private sector recovery is, so far, a fragile one and I fear it has to be far more robust than has so far been the case for the Government's gambles on the economy to work.

"The people of Wrexham must hope the Government is right, as the alternative will be unemployment growing once more and a ruined recovery."