The background is slighty blurred, but would be better if it was blurrier. You look at the girl instead of the object shes holding, which im assuming is the subject. If she was in a darker shirt it would help you focus on the object shes holding.
I think it needs the feel of movement more somewhere in the image. I probably would have swung the watch and tried to stop it letting the background look blurred.
The locket and the girl in the background compete with each other in this photograph. If the girl were a little more blurry then she wouldn't draw the viewer's eye as quickly and make a stronger photograph.