Business West, the region’s largest business organisation, welcomed today’s figures showing the South West leading the fall in unemployment – but warned that more needs to be done to get young people into work.
Phil Smith, managing director of Business West, which runs Bristol Chamber of Commerce and the Bristol Initiative, also said the figures masked a looming skills shortage that was now impacting on the city’s firms.
The latest report from the Office for National Statistics (ONS) reveals that unemployment in the region fell by 13,000 to 4% – a reduction of 0.5% in the for the three months ending August and 0.6% against this time last year. 
At the same time the number of people in work in the South West shot up by 47,000 to 78.4%, the highest of any UK region and above the national average.
But while total unemployment across the UK decreased by 79,000 and stands at a seven-year low of 5.4%, the youth unemployment rate remains way above average unemployment and, at 14.8%, is still above its pre-recession level of 11.6%. This was despite it falling over the year.
Phil Smith, managing director of Business West, pictured, said much more needed to be done to about youth unemployment.
“Today we see yet more positive news coming out the labour market, with national unemployment at a seven year low,” he said.
“The South West is spearheading this drive, with the highest employment and lowest unemployment of any UK region, a testament to the talent of and determination of businesses in our part of the country.
“Last month we saw the South West top the national employment rankings, and the latest data sees us carry on this trend. From a glance at this news you could be forgiven in thinking that the labour market is performing well, but this doesn’t tell the whole story. The headlines mask a skills gap that we know is still hurting firms day in, day out.”
The ONS figures were released on the same day as a national survey by the British Chambers of Commerce showing that the vast majority of business, school and college leaders want ministers to recognise the importance of pre-16 work experience. Make no mistake about it, although today’s figures show a fall in youth unemployment, there is still work to be done.”
