UNEMPLOYMENT levels in the South West has fallen to under four per cent, significantly below the national average.

This week the Office for National Statistics found that in the three months to December 2016, unemployment fell by 0.3 per cent to 101,000.

Unemployment in the region now stands at 3.6 per cent, well below the unchanged national average of 4.8 per cent.

Ian Larrard, director of Swindon and Wiltshire Initiative at Business West, said: "These figures show the jobs market in the South West continued to rally as 2016 drew to a close, with employment levels rising and unemployment falling.

"Our regional labour market remains one of the best performing in the country, and it is pleasing to see the jobless rate nationally holding steady at an 11-year low.

"The data chimes with the findings of our latest local business survey, which showed workforce levels and recruitment intentions rising in the final months of the year.

"While the labour market remains a source of strength for our economy, there are reasons to be cautious. This year looks set to be a year when rising inflation places increased pressures on business costs. Furthermore there are some suggestions that in aggregate the jobs market could be edging towards full capacity.

"In some sectors, and for some job grades, demand is already outstripping supply. Our latest quarterly survey also saw business confidence falling to an alarming four-year low, suggesting that critical uncertainties are still hanging heavy on West Country firms."