THE Dorset economy will have to brace itself as the full impacts of the recession are yet to be felt, councillors have been told.

A report presented at a meeting of Dorset County Council’s cabinet to update members on the impacts that the national economic situation was having on the county stated the worst was yet to come.

The council’s director for environment Miles Butler told the meeting: “The evidence seems to show the impact of the recession in Dorset is lagging slightly behind that of the position nationally.

“Most observers expect that the impact of the recession will hit Dorset in the not too distant future.”

The report also showed that unemployment in the county had shot up 130 per cent from February 2008 to February 2009, with 4,826 people out of work compared to 2,726 at the same point in the previous year.

In his report Mr Butler also sounded a note of caution over hopes that tourism could be the saving grace for the local economy, with the weak exchange rate and economic downturn potentially resulting in more holidaymakers in the area.

He said: “Evidence from private and public sector partners indicates that there is considerable interest in Dorset as a visitor destination but this interest is not yet being translated into firm bookings as people are reluctant to commit their resources at this stage of the year.

“Bed and breakfast establishments report that business is definitely down, as business visits have decreased and visits to family and friends are of shorter duration.”

Mr Butler said that the council could help combat the impacts of the recession through a number of measures including bringing forward projects requiring investment in the local economy and encouraging more local procurement of council contracts.

His report states: “It is important to maintain investment programmes which will underpin the local economy and facilitate the up-turn when it becomes evident.”