The latest fall in unemployment – down a further 7,000 in the South West – has been welcomed by Business West, the organisation behind Bristol Chamber of Commerce and the Bristol Initiative.
But Business West, the region’s largest business group, has warned that low unemployment brings its own challenges – particularly skills shortages and rising wage costs – and called on the Government to make sure these do not act as a break on the West of England’s strong economic growth. 
Figures released by the Office for National Statistics this week show the South West’s jobless rate fell from 4% to 3.8% in the period between September and November last year – the lowest level in the country along with the East of England.
Nationally the unemployment rate fell to 5.1%, a 10-year low. However, youth unemployment remains high at 13.7% – a rate that Business West has continually called for action over.
Business West managing director Phil Smith said: “The labour market remains a source of strength for our economy, and the latest figures provide another boost for the South West after our local business survey found that the region ended 2015 on a high.
“National unemployment has fallen to a 10-year low, and our region is spearheading this drive with one of the lowest levels of unemployment in the country. But there are still challenges ahead.
“Low unemployment will bring its own pressures, with a tight labour market and skills shortages in some sectors, such as IT and engineering, making it difficult for business to take new people on at affordable rates.
“Long-term planning is needed from government, education providers and business to ensure that these pressures don’t hold us back.”
Business West represents more than 16,000 businesses across the South West through its network of chambers of commerce and initiatives.
