Dundee is under threat from further job losses, an official study has warned.
A Scottish Government analysis found only two-thirds of working-age adults living in the city are in work, which is the second lowest rate in the country.
It comes as demand for staff in customer services and similar industries is predicted to fall.
In the summer, the Bank of Scotland announced the loss of 252 posts in its Marketgait call centre.
However, there was positive news with long-term growth “steadily increasing” in Dundee. Output per worker stands at £43,208, which is above the national average.
The assessment of Dundee’s economic picture was made as part of the Scottish Government’s location analysis for the country’s new social security agency.
It was revealed this week that 750 jobs would come to Dundee after it was chosen to host the welfare headquarters.
The move was announced by First Minister Nicola Sturgeon on a visit to the city on Monday.
“The unemployment rate in Dundee has fallen by 1.8% between 2015 and 2016, a relatively large decline compared to other local authorities,” the analysis said.
“However, the overall employment rate in Dundee sits at 66% which is one of the lowest in Scotland (64% in North Ayrshire is the lowest) and employment demand in secretarial, sales and customer service occupations is projected to fall.”
The report added that Dundee was lagging behind rivals in attracting workers, with “the pull of commuters into Dundee is not as strong as in other cities”.
Officials also noted the city had a “relatively low number of businesses per 10,000 people and a low business survival rate”.
Dundee was picked as the central location for Scotland’s first major new government agency based on factors including its ability to recruit, skilled workforce and scope for regeneration.