The number of dole claimants in Mid Devon is almost half the national average at a time when unemployment rates have reached a 16-year high, official figures show.

Last month, 2.2 per cent of working age people claimed Job Seeker’s Allowance, compared to the estimated average of 4.1 per cent across the country. The district fares well in comparison with Torbay, where regional unemployment is at its worst with 4.9 per cent claiming. The rate is at 4 per cent in Plymouth, 3.3 per cent in Cornwall and 2.4 per cent in the rest of Devon.

Gordon Cleaver, economic development manager for Mid Devon District Council, said: “While Mid Devon’s figure is one of the lowest in the South West, it is clearly still an issue as any rise is not welcome.

“When you look deeper at the figures you see in general terms Mid Devon, Devon and the South West fare slightly better than other areas in the country, considerably so looking at the headline figures.

“We have been quite lucky in Mid Devon as we are not suffering any major closures, but there is no reason to be complacent.”

Mr Cleaver said long-term unemployment and the number of young people out of work were key areas which needed to be addressed in the district.

He said the council was also drawing up a new economic development strategy which would identify what could be done to increase job opportunities, as well as identifying areas where new business space could be provided.

While there are far fewer people claiming benefits in Mid Devon compared with towns like Hartlepool, where more than 8 per cent of working age people sign on, the number of dole claimants in the Westcountry has risen by 10 per cent in the last year.

In Devon and Cornwall, 32,565 people claimed Jobseeker’s Allowance in January, up by 2,185 (or 7 per cent) on December and an increase of 3,210 (up 10 per cent) compared with the same month last year.

In the South West, unemployment was down 13,000 to 165,000, giving the region a jobless rate of 6.1 per cent. It is the lowest regional rate in the UK, suggesting the region – taking in cities including Bristol and Gloucester – is weathering the economic downturn better than others.

Tim Jones, chairman of the Devon and Cornwall Business Council, said: “If we were going to pick the lowest point for our part of the world then it is now. Businesses have got bills coming in and we have not got the tourism and leisure trade because people don’t have the disposable income that usually shores us up at this time of year.”