3 Labour Market

Issues and Priorities

  • South West England is characterised by having relatively high economic activity rates, high levels of employment and self employment and low rates of unemployment. South West England’s unemployment rate is the lowest of any region but, as with the national trend, is showing signs of an increase.  
  • Since 2001, the region has experienced marginally decreased rates of economic activity and employment and an increased rate of inactivity and unemployment. This is partially as a result of the slowdown in productivity growth combined with the region’s population growth and ageing population. As the population continues to age, economic inactivity rates may continue to rise and valuable skills and expertise lost from the region’s labour market.
  • Some sections of society within the region are less engaged in the labour market than others. Currently 16-19 year olds and 50+ age groups are under represented in the labour force; as are females, ethnic minority and foreign national groups as well as people with health problems and disabilities.
  • The region has varied labour market conditions across its sub-regions. Districts such as West Somerset, Penwith and Plymouth have relatively high unemployment rates whereas other areas such as the Cotswolds, North Dorset and Bath and North East Somerset arguably have near full employment.
  • Earnings are below the national average, but broadly similar to other English regions outside of London. Differing performance levels across the sub-regions are reflected in earnings. Generally, higher wages are paid in the northern end of the region which progressively reduces as one travels south and west. Wages in Torbay and Cornwall and the Isle of Scilly are particularly low, earning less than 80% of the English average.