Latest figures from the Ministry of Social Development show unemployment numbers in Dunedin have dropped 26% in the last year.

Dunedin South MP David Benson-Pope is welcoming the fall, saying it's further evidence of a strong New Zealand economy.

The figures show just over 14,00 Dunedin people were on the unemployment benefit for the year to December.

Benson-Pope says the total number of people receiving any kind of benefit in Dunedin fell by 7% last year.