LOCAL government watchdog Audit Scotland has praised Glasgow City Council for boosting education and cutting unemployment.

But it has criticised the authority for the way it manages its 38,000 workers and for lack of staff development.

Audit Scotland acts on behalf of the Accounts Commission checking public money is spent property, efficiently and effectively.

Four years ago, the Commission made its first assessment of the council's performance in providing best value for money for local people.

It said at the time it was encouraged by the rate of improvement Glasgow had made in recent years, but it insisted the council had to stay focused as it faced significant and complex social and economic challenges.

Audit Scotland has now carried out a new investigation of the work being done by the council.

Its report says the council has made progress towards long-term improvements in key areas, with increases in educational attainment levels and a reduction in unemployment.

A continued increase has been recorded in levels of reading, writing and mathematics in primaries one and two and there has also been an improvement in exam results.

And the council has reported the percentage of people of working age in Glasgow who are claiming state benefit has continued to fall from 30.3% in 2003 to 25.6% in 2007.

The finance watchdog says the council "is well placed to build on its current performance and we look forward to the council maintaining its momentum and continuing to improve."

However, Audit Scotland is less happy with the way Glasgow manages its workers, pointing out a staff survey in 2007 found only a third were proud of working for the local authority.

The report adds: "Most staff expressed satisfaction with working hours, sense of accomplishment and job security, but not with the extent of training and career development.

"The number of employees who felt they were treated fairly was relatively low at 37% and almost a third said they have experienced bullying in the workplace over the last two years, mainly by their line manager or service users."

Glasgow City Council's chief executive George Black said: "We have been working in recent years to ensure our staff are able to provide the best service they can to Glasgow's citizens and we will continue to do that."