Bristol firms are greeting positive economic news, such as the latest fall in unemployment, with “faint alarm bells rather than celebratory cheers”, according to the region’s largest business organisation.
Business West, which runs Bristol Chamber of Commerce and the Bristol Initiative, said politicians should now focus on the “significant hurdles” that remained to achieving a lasting recovery. 
Today’s figures from the Office for National Statistics (ONS) show unemployment in the South West fell by 7,000 to 4.5% between October to December 2014 – down 0.2% on the quarter, 1.8% lower on the year and well below the national average.
Nationally, the total UK unemployment rate of 5.7% is the lowest since mid-2008. However, the youth unemployment rate was 16.2%, which was static on the quarter – and while it is down 3.7% on the year, it is still above average unemployment and pre-recession levels.
Business West executive director James Durie, pictured, welcomed the fall in unemployment, saying: “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.”
Earnings were now increasing much faster than prices, which was good news, he said. However, it was important to remember that wage increases could only be sustainable if they were matched by increases in productivity.
“In Bristol for instance, which this year is European Green Capital, the city region economy still has a long way to go to match the productivity and long-term competitiveness of many knowledge-driven city region economies in northern Europe,” he said.
“These are the more useful comparisons we should be making to benchmark our economy and challenge our policy makers.
“We must match the positive developments with the right policies, in order to support business confidence and help drive the economy forward.”
Business West’s Business Manifesto, which will be sent to every prospective Parliamentary candidate in the region, calls for protection for Bristol Airport from any unfair competition created by the devolution of Air Passenger Duty power to Wales among projects to boost the economy.
Mr Durie added: “We were also at the British Chambers of Commerce annual conference last week which brought together business leaders and high-level political figures such as keynote speech Prime Minister David Cameron.
“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.”
