Brighton and Hove's status as a boom city for jobs is under threat, according to Sussex business chiefs.

The city was today listed as one of the top ten places in the country for creating jobs in the last decade.

Figures released by economic analysts Business Strategies showed there was a net increase of 16,100 jobs between 1991 and 2001.

The list was topped by Milton Keynes, with Dundee coming bottom.

But Sussex Enterprise area director Mike Cook said jobs growth was slowing in Brighton and Hove.

He said: "I think we can attribute the success mainly to the new media, and IT sectors which have attracted a large number of start-ups and developing companies.

"There are still new businesses coming through, but those outgrowing their premises are finding it very difficult to continue expansion within the city.

"Key decisions on sites around the city owned by the council have not been taken and there is a tremendous squeeze on accommodation.

"It has been good news for ten years but we are not sure it will continue to be good news."

Earlier this month, it was revealed the number of households claiming benefits in the city fell to 26,735 from 28,639 thanks to lower unemployment.

Across Sussex, unemployment fell last year by 3,326. However, Sussex Enterprise expects there to be a rise this year, partly as a result of job losses at Gatwick after September 11.

Richard Yorke, associate director of Business Strategies, said: "Research into the reasons why employment in some places has grown faster than others has highlighted factors including industrial structure, labour force quality and qualifications mix, proximity of airports, population density and ethnic mix.

"Prosperous regions produce good school-leaver results, which then produce an advantageous qualifications mix and more prosperity in the future.

"The reverse also applies and this tends to widen the north-south divide."