3.1.1 The South West labour market continues to be characterised by relatively high economic activity rates compared to the national average, high levels of employment and low rates of unemployment. Average earnings in the region are lower than the national average.
3.1.2 South West England has relatively high employment in agriculture, forestry and fishing; wholesale and retail trade; and accommodation and food service activities. The region has a lower concentration of high value added sectors such as banking and finance. Comparatively, this structure contributes to lower overall levels of productivity.
3.1.3 The SW region has the highest part-time working rate in the country. While part-time working can be a flexible and efficient solution for many in the labour force, high rates can lead to under utilisation of labour and lower productivity.
3.1.4 The region’s workforce includes a high number of workers in skilled trade occupations, but a below average representation of those in well paid and more productive professional occupations.
3.1.5 Although the recession led to an increase in unemployment, evidence suggests that the South West has not been as adversely affected as other regions and unemployment rates have already begun to fall. With the full effects of the public sector cuts yet to set in, it remains to be seen whether unemployment will continue to decline in 2011 and beyond.
3.1.6 Across the region, between 2008 and 2009, 20-24 year olds (particularly males) saw the highest rise in the claimant count measure of the unemployment rate, but as the recovery set in, this group saw the largest fall from 2009 to 2010, perhaps reflecting the previously high levels. Unemployment has historically been high in this age group and, despite the recent fall, this group continues to have the highest number of claimants within the region. The relatively weak competitiveness of young unemployed men in the workforce is a particular issue for the regional (and national) economy.
3.1.7 The SW region’s population is older than average and the proportion of older people is predicted to grow faster than the national average over the next twenty years. At present, overall participation rates in the labour market remain high, although ageing may well affect this over time. Key issues include - filling replacement demand for the skills of older workers leaving the labour market in the coming period, managing the relatively high dependency ratio (those aged over 65 as a proportion of the working age population) in some parts of the region and providing flexible working opportunities for older workers.
3.1.8 Employment growth in recent years confirms the long term structural shift from manufacturing to service based employment with the largest employment growth in business and financial services.
3.1.9 The sub-regional picture is varied. Employment and activity rates are relatively strong in South Gloucestershire, Swindon and Wiltshire, but weaker in Cornwall, Bournemouth and Torbay.
3.1.10 The recession has not affected the sub-regions homogeneously. Claimant count figures indicate that the impacts of the recession have been felt most severely in some of the key economic centres in the region - Swindon, Bournemouth and Bristol. From 2008 to 2010, Devon, Dorset, Gloucestershire and Wiltshire were comparatively less affected by rising claimant count figures.
