OFFICIAL figures brought welcome news to Hampshire’s economy yesterday with a drop in the number of people on jobless benefits.

Dole queues shortened in most parts of the south – and July’s claimant count of 18,749 was more than 250 lower than the previous month.

However, there are still more people claiming job seeker’s allowance than a year ago, and business chiefs said they were worried about the number of young people looking for work.

Following yesterday’s figures from the Office for National Statistics, ministers insisted the south east continued to outperform the national average despite a drop in employment and a 2,000 rise in unemployment in the last quarter. This wider measure is separate to the job seeker’s allowance figures as it includes people not actively looking for work.

A total of 5,240 18 to 24-yearolds are claiming job seeker’s allowance across the south.

Of these, 1,835 have been claiming for more than six months.

Ian Welland, head of area development for Hampshire Chamber of Commerce, hailed the figures as proof of renewed optimism.

He said: “In Hampshire’s case, the youth unemployment figures remain a particular concern but I am pleased there is so much being done to encourage apprenticeships and training.”

The key now he said was to boost jobs skills and training as well as introducing funding to encourage hiring.

He added: “A fresh look could be important in that it will bring forward our young entrepreneurs and turn their ideas into real businesses.

“Entrepreneurs have tremendous ideas but often lack the key skills in running businesses.”

Neil Eames, development manager for the FSB Wessex region, welcomed the news, but said: “While it is good that people are in jobs, these jobs are mainly part-time when people would prefer full-time work.

“Small businesses are key to sustaining the recovery but they need to be supported in enabling a greater number of people to be in full-time work.

“We have long said that businesses are more likely to take on staff if they receive a tax break.

“So extending the National Insurance Contributions scheme to existing businesses will go some way in helping to achieve this.”

Meanwhile, across the UK, unemployment fell to its lowest level for a year after a big jump in the number of people in work.

The jobless total fell by 46,000 in the quarter to June to 2.56 million, an unemployment rate of eight per cent.

Daily Echo: Unemployment figures

Local authority JSA claimants   June July Basingstoke and Deane 2,336 2,210 Eastleigh 1,501 1,495 Fareham 1,261 1,268 Gosport 1,529 1,596 Isle of Wight 2,986 2,937 New Forest 1,897 1,848 Southampton 5,439 5,362 Test Valley 1,085 1,057 Winchester 977 976 Total 19,011 18,749