West Sussex has one of the lowest rates of unemployment in Britain, according to a new report.

Latest figures reveal joblessness in the county runs at just 2.5 per cent, less than half the national average of 5.3 per cent.

In the South East, only the affluent commuter-belt counties of Surrey and Buckinghamshire record a lower figure, at 2.4 per cent.

In East Sussex, 3.4 per cent of the workforce is unemployed while in neighbouring Brighton and Hove 6.1 per cent are out of work.

But while the figures are generally good news for the local economy experts have warned of possible knock-on effects as a skills shortage makes it difficult for companies to recruit.

Analysts also warn of a possible boom in property prices, which could drive away key workers such as teachers and health workers.

There are 10,000 people out of work in West Sussex, according to the report from the Trades Union Congress released today.

Laurie Heselden of the TUC said: "Some of the factors which affect places like Brighton do not affect West Sussex.

"In Brighton, where unemployment is at 6.1 per cent, it has been caused because of a decline in manufacturing and because it is a magnet for young people. There is also a lot of seasonal work there.

"We have found these things are not typical of places like Worthing and West Sussex in general.

"But there is a flip-side to having low unemployment figures. It is more difficult for companies to recruit the kind of staff they are looking for and in turn businesses might think of relocating.

"It could also lead to more people travelling into the county from outside and that puts more pressure on the road network and it also has an impact on the housing market and prices go up."