“Despite losing jobs, which we all regret, unemployment in Dundee fell from 4.1% in March 2007 to 3.7% in March 2008,” he said.

“Job vacancies increased, with the ratio of unemployment numbers to notified job vacancies improving from 4.4% in March 2007 to 2.7% in March 2008.”

Mr Keenan pointed to the news that Tesco is to create 300 new jobs at its customer call centre in the city, followed quickly by an announcement that the new National Life Sciences Institute will lead to 40 jobs when it opens in Dundee later this year.

“This is further proof that the city continues to have a healthy and thriving economy despite the painful job losses we have experienced in the past year,” he said.

Among the other positive employment announcements in the past year, Mr Keenan cited 160 jobs at the new Alliance Trust headquarters, 100 more jobs at BNP Paribas, more than 250 jobs at Morrisons supermarket, and 70 jobs in medical research.

“And we continue to see major investments in new housing developments, office accommodation, educational facilities and hotels,” he said.

“Since 1997, the number of companies operating in Dundee has increased by over 500 and the number of employees by almost 10,000.”

Mr Keenan said Dundee was undergoing a process of change from a city of manufacturing to one that used knowledge to generate wealth.

“Since 2003 the number of jobs in the manufacturing sector has fallen and now only 10% of the Dundee economy is made up of such jobs, down from 14.5% five years ago,” he said.

“The process of change in the city’s economy is a painful one for the companies and individuals affected and we still need government help to ease that transition.

“But the recent good news is more proof that we do have successful strategies in place to handle that change and to bounce back from the blows we have had to deal with.”

He said nearly 80% of firms in Dundee benefit in some way from using broadband to do business and the resulting increase in profitability is 10% greater than the national average.

“There are further opportunities for growth offered by the land and infrastructure now available along the Kingsway, with a £30 million planning application to be considered in coming months to create offices and associated works at the former Valentine’s factory.”

Mr Keenan said he wanted to pay tribute to the council’s economic development department and other public agencies in the city for the work being done to bolster Dundee’s economy.