DONCASTER MP Caroline Flint has warned that just a few people in the borough feel the area is through the worst of the recent economic problems.
A report by the Centre for Cities think tank said the borough had seen one of the biggest falls in unemployment, at 1.2 per cent, between March and November 2010.
It was among the findings of the report Cities Outlook 2011.
But Don Valley MP Ms Flint said: “Any fall in unemployment is welcome, but Doncaster has yet to see the impact of 700 council job losses, which could also have an impact on local private sector jobs, or the impact of the Tory led government’s decision to raise VAT.
“The recovery remains slow and fragile in our region and there are few signs that people feel Doncaster is through the worst or bouncing back yet.”
Unions fear the council could shed around 2,000 jobs over the next three years as part of major spending cuts.
But Mayor of Doncaster Peter Davies did not share Ms Flint’s views.
He was pleased with the report and praised the borough’s economy.
Mr Davies said: “I am pleased to see Doncaster recognised in the report for the strong recovery we have shown coming out of the recession.
“The Cities Outlook 2011 confirms what we all know here - that there is a buzz around Doncaster’s economy with new jobs being created every week.”