Unemployment in the East Midlands has fallen slightly to 4.7% for over-16s, according to the latest Office for National Statistics figures covering May to July 2025. This follows a decline from 5% to 4.8% in April to June, marking a gradual downward trend.
Despite the decrease, businesses in the region continue to face staffing pressures. Recruitment activity has slowed, with only half of local companies attempting to hire and six in ten reporting difficulties securing suitable candidates. Rising staff costs, including higher National Insurance contributions and increases to the national living wage, have compounded challenges alongside ongoing inflationary pressures.
Companies are also preparing for changes under the Employment Rights Bill, which is expected to introduce additional administrative and compliance obligations. Industry representatives have called for amendments to limit the financial and operational impact on firms.
Expectations of potential tax increases in the upcoming Autumn Budget further complicate economic conditions. Business groups stress that without supportive measures, the combination of staffing shortages, higher costs, and new legislative requirements could strain regional employers.
