Unemployment falls again, but Business West says challenges lie ahead

Unemployment in the South West between October and December last year dropped by 7,000 to 4.5 percent, down 0.2 percent on the quarter, according to figures released this week by the Office for National Statistics.

And the total UK unemployment rate of 5.7 percent is the lowest since mid-2008.

The youth unemployment rate was 16.2 percent, which was static on the quarter. This is down 3.7 percent on the year, but still above average unemployment and pre-recession levels.

Commenting on the labour market statistics James Durie, executive director of Business West, said: “In what seems to be a recurring theme as the UK has pulled out of a damaging recession, today we see yet more positive news coming out of the labour market.

“Unemployment has continued to fall over the past year as GDP growth pushed us out of a downturn. Whilst a continual drop in unemployment is encouraging, it must not mask significant hurdles still in front of us.

“Yes, UK employment is at its lowest since mid 2008, and yes, the South West is spearheading this decrease with a rate well below the national average.

“But there is a reason we are still hearing faint alarm bells rather than celebratory cheers. With a General Election looming in May there is still work to be done to create a prosperous environment for business.

“We must match the positive developments with the right policies, in order to support business confidence and help drive the economy forward.

“In light of this we have released our Business Manifesto fighting for local business at this critical time, which will be sent to every prospective parliamentary candidate in our region.

“The message from both our local manifesto and the national plan; a fresh batch of decision makers – regardless of political colour – must create the best possible environment for business in the next five years and beyond.”