Unemployment in Glenrothes and Central Fife has dropped to 4.1 per cent according to the latest figures to the end of September.
There are now 1,794 people looking for work, 375 less than in August and 835 less (31.8 per cent) than at the same time last year.
Over the past 12 months, employment among young people (18-24 year olds) has fallen by 230 (29.3 per cent) to 555, while those out of work for more than a year fell by 370 to 450 over the same period, a reduction of 45.1 per cent.
Local MP Lindsay Roy said: “These are very welcome figures, particularly the reduction in youth and long-term employment, and I hope the downward trend continues.
“However, more than 230 jobs are being lost in Glenrothes following the recent announcements that Velux is closing its manufacturing facility and HMRC is shutting the tax office, so it is difficult to see how this improvement can be maintained.”
Mr Roy concluded: “It is imperative that all levels of government make every effort to work together to offset the jobs blow to the town.’’