There are 25% less 18 to 24-year-olds claiming Jobseekers Allowance (JSA) in Caerphilly County Borough compared to last year, official figures have shown.
Overall JSA claims have fallen 19% between January to March 2015 compared to the same period last year.
Across Wales employment is up on the last quarter but there are 4,000 less people in work than in the same period last year.
The Office of National Statistics confirmed that the number of people unemployed in Wales has remained static since October at 99,000.
Mick Furby, manager at Caerphilly Jobcentre Plus, said around two thirds of those who stop receiving JSA go into work.
He said: “Claims are falling and the sanction rate is at 7%. We are trying to do what is reasonable and fair.”
The statistics come as the UK Government’s new Universal Credit benefit system was rolled out across Bargoed and Blackwood.
Universal Credit replaces many benefits, including Working tax Credits, and pays claimants on a monthly basis.
Mr Furby said instead of benefits stopping when a claimant works more than 16 hours, Universal Credit is judged on income.
He said: “The expectation of the customer is very similar to what we would expect with JSA. We expect them to do more and more job searches and sign up to the claimant commitment.
“The focus of Universal Credit is about getting people into work, and getting people into long term work whereby the rate of pay they get carries them out of benefits.”