Unemployment has edged back up again in the South West, but business leaders say the recovery is firmly on track and firms are planning to recruit more workers.
Latest figures from the Office for National Statistics (ONS) for the period from May to July show unemployment rose marginally in the region – up by 1,000 or 0.1% on the previous quarter to give a jobless rate of 5%. 
However, this is down by 1.2% year-on-year and remains below the national average of 6.2%, despite being the second consecutive quarterly increase.
The ONS figures show the national jobless rate continued to fall and is at its lowest since late 2008, at 6.2%. This is down 0.4% on the quarter and 1.5% on the year.
National youth unemployment was 16.6%, down from 18.5% in the previous three months but still above pre-recession levels.
Phil Smith, managing director of Business West, which runs Bristol Chamber of Commerce and the Bristol Initiative, said: “Although the marginal increase in unemployment this quarter is a concern, the labour market in the South West has continued to strengthen in 2014 with unemployment down on the year and below the national average
“This aligns with what businesses told us in our local business survey with increases in both recruitment this quarter and expectations for the next three months. This growth has fuelled business confidence in the region, which has increased by 9% standing at 74%.
“At last the stubborn youth unemployment figures are moving in the right direction but, for this trend to develop into a structural shift, we all – business, government and education – must work harder on aligning our education system with the world of work.”
West of England Local Enterprise Partnership (LEP) director of skills Adam Powell added: “While the picture is conducive to a strengthening economy, we are continuing to develop a more locally-responsive infrastructure to tackle skills shortages and skills gaps highlighted by employers, while ensuring that appropriate opportunities are made available to those who would benefit from them most.
“For example, through strong partnership working between local authorities, education providers, the Department for Work and Pensions (DWP) and business, initiatives such as the Creative Employment Programme and HYPE (Helping Young People in to Employment) are already providing a range of new high quality jobs for young people in the local area.”
The CBI welcomed the fall in national unemployment, saying it was clear that the economy was now growing and feeding through to new jobs. But it said there was more to do.
Director for employment & skills Neil Carberry said: “Jobs growth is coming from the private sector, more than making up for public sector job losses, and more young people are finding their feet in our labour market.
“With unemployment dropping, and wage settlements in larger firms starting to pick up, we expect to see average earnings growth begin to rise in time.”
