Reacting to the latest labour market data from the ONS, Patrick Milnes, Head of Policy for People and Work at the British Chambers of Commerce, said:
“Although unemployment has held steady at 4.9%, this cannot hide the wider problems bedeviling the UK’s job market.
“Business confidence is at a post-Pandemic low and the squeeze on firms’ finances shows no signs of easing.
“With last week’s announcement that changes to zero hours contracts could cost businesses almost £3bn, many will be reassessing their recruitment plans.
“The BCC’s latest economic forecast suggests unemployment could reach 5.2% by Christmas, with youth unemployment spiraling to 17%, as businesses continue to face pressure from high labour costs.
“While Andy Burnham has spoken about a new deal on education and changes to apprenticeships, if businesses cannot afford to take people on then progress will be slow. The ONS cites a downturn in hiring among SMEs as the main driver of falling vacancies.
“The BCC’s cost stack calculator shows that costs for the average SME have increased by more than 70% in the last ten years due to successive governments’ policies.
“Much more must now be done to bolster business confidence and unlock hiring by tackling cost pressures on firms, including a holiday on employer national insurance contributions for under 25s.”
More detail on the labour market data can be found here.