The latest drop in unemployment has been welcomed by business groups – but they warned that the pace of the fall has slowed and urged the Government to do more to help young people into work.
Business West, the organisation that runs Bath Chamber of Commerce, also questioned the number of part-time and fixed term contract jobs being created.
The latest figures from the Office for National Statistics (ONS) released this week show between September and November last year unemployment in the South West fell by 7,000 to 4.4%, down 0.3% on the quarter. This is down 2.4% on the year and below the national average of 5.8%. 
Employment in the region increased by 9,000 on the on the quarter to 76.3% – a rise of 1.9% on the year and putting the South West above the national average.
However, youth unemployment rate rose to 16.9% from 16.0% in the previous three months and remains above average unemployment and pre-recession levels.
Business West managing director of Phil Smith, pictured, said the figures confirmed that the UK labour market remained a key strength for the UK, but some areas of concern remained.
“Although employment is up and unemployment is down, the quarterly changes were the lowest since 2013, supporting the view that the growth in the UK economy may be gradually slowing,” he said. “Furthermore after a few quarters in the right direction we have seen an increase in youth unemployment this quarter.
“Superficially the labour market remains strong but this may hide less positive factors such as people employed on part time and fixed time contracts and unable to get full time permanent roles. This is all the more reason to look to the general election and reinforce the focus on economic policy as we reach a critical time in the political cycle.”
The CBI also raised some concerns over the figures, Deputy director-general Katja Hall said: “It’s good to see that employment has risen again, albeit at a slower rate than over the last few quarters.
“Pay edged up faster than inflation, but overall pay growth remains low. Productivity will need to improve significantly before pay can rise faster.
“There’s also more to do for young people – while unemployment fell overall, the number of 16-24 year olds out of work and not in education has increased substantially this quarter.”
