Employment levels are expected to rise in Sheffield from this month as companies take on extra Christmas staff.
New jobs figures show there are now 9,700 people in the city claiming Jobseeker’s Allowance - an 18 per cent fall on the same time last year.
Similar reductions in benefit claimant numbers have also been recorded in Rotherham, Barnsley and Doncaster.
Nigel Coleman, a manager at the Cavendish Court job centre in Sheffield, said he expected to see further falls in unemployment in South Yorkshire as Christmas approaches.
He said local job centres have been advising people about a forthcoming jobs fair at Meadowhall on September 23, where more than 40 retailers based at the centre will be looking for candidates to fill hundreds of seasonal jobs.
Nationally, figures from the Office for National Statistics show unemployment has risen for a third month in a row - the first time this has happened since 2011.
Joblessness grew by 10,000 between May and July, to 1.82 million
National figures showed that pay has risen by an average 2.9 per cent year-on-year in the three months to July. ONS statistician Nick Palmer said: “Regular pay - not including bonuses - is growing at its fastest rate for over six years.”