Oxfordshire's jobless figure dropped last month by 289 people, despite the worst national total for 12 years.

The number of people claiming Jobseeker's Allowance fell in Oxford, Cherwell, the Vale of White Horse, South and West Oxfordshire, giving a county total of 8,951, compared with 9,240 last month.

The October figure, released by National Statistics, was the best since February.

Nationally, the youth unemployment rate reached a record high of almost 20 per cent and the jobless total continued to increase, although at a slower pace.

The number on jobseeker's allowance rose by 12,900 in October to 1.64 million, the 20th consecutive monthly increase, giving the worst total for 12 years.

However, it was the smallest monthly rise since April last year.

Other data showed the number of people out of work in the UK — including those not claiming benefits — increased by 30,000 between July and September to just under two and a half million.

The Government welcomed the increase in employment and the slower than expected rise in the jobless total.

Work and Pensions Secretary Yvette Cooper said: "The figures show more people in work and a lot more young people taking up our offer of full-time education and training, which is welcome news.

"The fact that unemployment is significantly lower than everyone forecast at the beginning of the year shows the support for the economy is making a real difference.

"But we know things are still tough for a lot of families, and unemployment is expected to increase further next year.

"That's why we're determined to do more with an extra 35,000 youth jobs, more apprenticeships and education places so we can guarantee no young person gets stuck in long-term unemployment."

The Government said today's figures reinforced the fact that the UK labour market was performing better than most major economies, showing UK unemployment at 7.8%, compared to an EU average of 9.2% and lower than 14 other EU countries including France (10%), Ireland (13%) and Spain (19.3%), as well as the US (10.2%) and Canada (8.6%).

Paul Kenny, general secretary of the GMB union, said: "These figures show what a dismally bleak landscape there is for the jobless and their families as Christmas approaches, particularly for the young workers struggling to get into the labour market.

"If, as seems likely, the financial elite who caused this recession and its attendant havoc resume skimming their multimillion bonuses, anger will boil over.

"In the forthcoming pre-budget report the Government must not fail to take pre-emptive action to stop the financial elite adding insult to injury to those who are paying the price for their recklessness."