Introduction (Labour Market, State of the South West 2011)

3.3.1 The South West’s labour market was supported by the long period of sustained economic growth that occurred between the mid-1990s to early 2008. However, the recession that began in the second quarter of 2008 and officially ended in the third quarter of 2009, led to rising unemployment rates across the country. The Economy chapter provides more detail on the recession and prospects for recovery in more detail. This chapter considers the long term structure of the labour market in the region, and where possible, indicates how the recession has affected these patterns.

3.3.2 Labour is one of the principle resources fuelling economic production. Effective utilisation of the labour force is crucial for a region’s economic prosperity. Income from employment can provide a key mechanism for improving a person’s standard of living, and fulfilling employment can lead to improvements in well-being.

3.3.3 This chapter is set out in two sections - labour supply and labour demand. The supply section explores the nature of SW population demographics and economic participation using various labour market indicators. The demand section looks at the industrial and structural composition of regional employment and examines average earnings of employees. Skills are an important feature in the labour market - data and information about skills are covered in the Skills and Learning chapter.