The Government must address youth unemployment by plugging the skills gap between education and work, the region’s biggest business organisation said this week.
Business West, which runs Bristol Chamber of Commerce and the Bristol Initiative, made the plea as it welcomed a further fall in unemployment across the South West.
Figures from the Office for National Statistics (ONS) for the three months to the end of April show unemployment in the South West dropped by 5,000 to 4.2% – a fall of 0.3% on the quarter and down 0.6% on the year. Total UK unemployment now stands at 5.5% – its lowest since August 2008. 
However, youth unemployment edged down by just 0.1% during the three months. While the rate was16.1% against 18.4% this time last year, Business West pointed out that it remains way above average unemployment and pre-recession levels.
Managing director Phil Smith, pictured, said: “The latest figures confirm that the labour market remains a major source of strength for the South West economy with unemployment continuing to fall. Our region is outperforming the national average, and this quarter saw 42,000 more people enter our local workforce.
“On a national level unemployment has declined for well over a year, and currently stands at 5.5%. Today’s figures also reveal that annual real wage growth is now at 2.7% – the highest it has been since 2007, showing that both jobs and pay are on an upward trajectory.”
But he there were still some areas of unease. “Youth unemployment remains stubbornly high and is still almost three times as high as the national average,” he added.
“With a new Government in place we need to see firm action taken to address the skills gap between education and business which is restricting our long-term prosperity.”
