The East Midlands Chamber has called for government action as unemployment in the region rises to 5%, exceeding the national average. The latest figures from the Office for National Statistics show the regional unemployment rate is the highest since mid-2024, with an increase of 0.3% from the previous quarter.
The Chamber has emphasised the need for supportive policies to aid businesses, including amendments to the Employment Rights Bill currently under review in the House of Lords. They are also urging that further tax increases in the upcoming Autumn Budget do not burden businesses.
According to the Chamber’s latest Quarterly Economic Survey, only half of businesses in the region are actively recruiting, representing a 7% decline over the past three quarters. Additionally, expectations for workforce growth have fallen sharply, with only 20% anticipating an increase in staff numbers. This dip in recruitment efforts and growth expectations reflects broader concerns, including rising operational costs, such as higher National Insurance contributions and the increased national living wage.
The Chamber warns that these challenges, combined with soaring inflation at 3.6%, could further strain businesses, tiny and medium-sized enterprises (SMEs). The Employment Rights Bill, if passed without amendments, is expected to introduce additional complexities around employment contracts and statutory sick pay, potentially leading to disputes and claims. The Chamber has urged policymakers to prioritise business needs and make necessary amendments to ensure the region’s firms can continue to thrive.
