Figures show that the number of people claiming Job Seeker's Allowance (JSA) fell from 12,351 in August 2012 to 11,770 in August this year.
There had also been a reduction from July this year to August, with claimants falling from 12,000 to 11,770.
This follows the trend of the rest of the Black Country which has seen JSA claimants fall from 46,901 in August 2012 to 42,736 this year.
These latest figures are a boost to the city which has a 7.4% unemployment rate - one of the highest in England.
Councillor Peter Bilson, Wolverhampton City Council's Cabinet Member for Economic Regeneration and Prosperity, said: "This is very encouraging news for our city.
"It is very pleasing to see the number of people claiming JSA falling and we hope that this trend will continue in the coming months.
"We are working hard to help regenerate this city and create more employment and training opportunities for people in Wolverhampton to help achieve this.
"But, despite this positive news, we are under no illusions about the task ahead. A 7.4% unemployment rate is obviously very high and we need to work with our partners to address this as soon as possible."
Wolverhampton City Council will start posting unemployment briefings on its website later. This will give people monthly updates on JSA claimant rates in Wolverhampton and how they compare with the Black Country and England as a whole.
The page can be accessed at Type=links;Linkid=2655;Title=Wolverhampton in Profile;Target=_blank;.
- released: Monday 30 September, 2013