Devon has a diverse economy with potential for future growth if it can continue to improve skills levels and attract new business to the area, research shows.

Devon County Council's latest report, titled State of the Economy, looks at the key economic indicators such as population growth, skills levels and average wages to give a clear picture of how Devon is performing in relation to the rest of the UK.

Careful analysis of the data will help the council make informed policy decisions to improve residents' lives for the future.

Devon County Council Councillor Humphrey Temperley said: "We're pleased to see that Devon continues to show low unemployment levels and offer residents a variety of employment opportunities.

Humphrey Temperley, Devon County Council: "We have a diverse economy with thriving marine, tourism, real estate, retail and food and drink sectors."

"We have a diverse economy with thriving marine, tourism, real estate, retail and food and drink sectors.

"Other positives highlighted in the report include a solid tradition of self employment and good educational levels, together with high environmental quality which is a key factor for attracting modern businesses and new workers to the area in the future."

One of the most welcome improvements has been seen in South Hams, which has shown a significant increase in levels of productivity in comparison to 10 years ago.

The area now also enjoys a high retention rate of graduates and a higher level of skills than both the Devon and national average.

Exeter and the surrounding areas continue to show rapid growth with levels of skills, competition and business investment standing at 120 per cent of the national average.

The council says it recognises that there are some significant areas where economic improvement is required.

Torridge falls below the national average in terms of skills levels, salaries and business investment. Research suggests location and a downturn in agriculture and food manufacturing as contributing factors.

The study also shows that a percentage of the Devon population are working at a lower level than their qualifications and some difficulties still exist with literacy and numeracy.