Some 4.1% of people aged 16 and over currently do not have a job in Wales, according to the latest labour market data from the Office for National Statistics (ONS) for April to June.
This is equivalent to 62,000 people. It is down by 0.4% compared to the figures for January to March, with the number of people out of work having fallen by 6,000.
Economy Minister Vaughan Gething said the figures were "encouraging" but that "there are still some real challenges facing the Welsh economy as a result of the Coronavirus pandemic and the UK’s departure from the EU."
His words were echoed by Welsh Conservative shadow economy minister Paul Davies, who said the promising figure shows the "labour market is beginning to recover after a difficult 18 months" but that we should be "wary of a premature celebration" as there is still a way to go to regain pre-pandemic employment levels.
Wales' current unemployment rate is also lower than that of the UK as a whole, which currently stands at 4.7% or 1.6m people.
Read more: Admiral is hiring and there are hundreds of jobs you can apply for right now
However comparable figures from April to June in 2020 show that unemployment in Wales has risen by 1.3% – or 21,000 people – in a year.
For the same period this year the east of England, south west of England, and Northern Ireland are the only regions which have lower unemployment levels in their populations compared to Wales at 3.9%, 3.6% and 3.8% respectively. The region with the highest unemployment rate in the UK is currently London (6.4%).
The data comes as it was warned hundreds of thousands of people across the UK could lose their jobs when the furlough scheme ends next month. As of the end of June there were 68,800 employments on furlough in Wales according to UK government statistics.
Mr Gething assured that the Welsh Government is continuing "to pull every lever possible to back Welsh businesses during this incredibly challenging time".
He said: "As part of our efforts to kick-start a strong economic recovery, we want to help create new jobs in the industries of the future, providing work and training opportunities to people across Wales. In particular, we have a clear focus on supporting young people into work. That’s why we are committed to delivering our Young Person’s Guarantee, which will give everyone under 25 in Wales the offer of work, education, training, or self-employment. We’re also committed to creating 125,000 all-age apprenticeships, giving people the opportunities they need to fulfil their potential."
Check out the jobs on offer near you at the moment:
To get the latest breaking news sent to your email inbox, sign up for our free newsletter by clicking here.
