South West unemployment holds steady at 3.6%

The latest data released by the Office for National Statistics today (18th October) found that in the three months to August 2017:

• South West unemployment remained unchanged on the quarter at 3.6% (101,000)
• Employment in the region fell by 21,000 to 77.7%
• Nationally, the unemployment rate remained at 4.3% - the joint lowest level since 1975

Commenting on the labour market statistics, Phil Smith, Managing Director of Business West, said:

“This month’s figures paint a familiar picture of high employment, low joblessness and a labour market in the South West among the country’s very best-performing. Nationally, the UK’s continued ability to create jobs remains striking. 

“However, a drop of 1.5% in the South West’s employment rate could suggest that our region’s job-generating capacity is beginning to be stretched. For employers, a tighter labour market brings with it concerns over skills gaps along with growing pressures on wages. Business West’s own latest Local Business Survey revealed subdued workforce growth during the 3 months to September and 63% of firms who tried to recruit over this period reported difficulties finding suitable staff. With inflation now standing at 3% adding further cost pressures for firms and a growing expectation that the Bank of England will raise interest rates in the near future, now is certainly not a time when businesses will be feeling complacent.

“In a period still marked by unprecedented uncertainty, and with sluggish productivity and economic growth, businesses want to see concerted action from government to boost confidence. In his Autumn Statement next month, the Chancellor has the opportunity to deliver just that, not least by taking meaningful action to tackle a legacy of infrastructure underinvestment that continues to hold business back. Only then will firms across the West be best placed to repay him with investment, hiring and growth.”