Businesses in Sussex are at the forefront of the UK's economic growth.

While jobs are being lost throughout the country in the manufacturing, engineering and technology sectors, firms in Sussex are still recruiting.

Karen Cole, director and founder of Crawley-based recruitment company Alexander Lloyd, said many local travel companies had cut jobs but there were vacancies in other sectors.

She said: "People may have to offer an employer different skills but there are jobs. We specialise in recruiting for the insurance and accountancy sectors and have clients in a wide range of industries who are increasing their recruitment.

"While there has been a slowdown in recruitment since September 11, firms are keeping an eye on the future because they don't want to be caught out when the economy picks up.

"There are also still vacancies in engineering, manufacturing and business services, but employers are being cautious."

According to Sussex Enterprise, the regional economy is growing at a rate of two per cent compared with the national average of less than one per cent.

Director of policy Mark Froud said: "In the past year, unemployment in Sussex has fallen by 3,326 or 19.4 per cent. This reflects the positive performance of the economy and the success of the business community.

"But we are expecting unemployment to rise over the next year.

"This is partly as a result of the slow down in economic growth but also due to impact of the recently announced job losses at Gatwick.

"Our advice is that businesses should think long-term, rather than make a knee-jerk reaction. The UK economy is one of the strongest in the world."

A note of caution came from the Sussex branch of the Institute of Directors which said business confidence was falling fast.

Chairman Michael Evans, said: "There are grounds for cautious optimism that a sig-nificant part of the Sussex economy will ride out the current difficulties but there will undoubtedly be pain in some sectors directly affected by the terrorist outrages and the foot-and-mouth troubles."

Encouraging signs were the strength of the housing market and the apparent willingness of the Bank of England to further cut interest rates.