Reacting to the latest labour market data from the ONS, Caterina Batog, Research and Economics Analyst at the British Chambers of Commerce said:
“Unemployment remained at 4.9%, in the three months to July, a clear indication of the continued stress businesses are feeling as they navigate a world of increasing costs. Another rise in youth unemployment is particularly concerning.
“Business investment intentions are at their lowest level since the pandemic, with confidence continuing to weaken as firms hold off on spending ahead of the Autumn Budget.
“Last week, the Chancellor outlined how vital business is to the government’s plans to grow the economy. But if firms cannot afford to take people on then progress will be slow.
“The BCC’s most recent economic forecast suggests unemployment could reach 5.0% by Christmas, with youth unemployment hitting 16.6%, as firms continue to face pressure from high labour costs.
“Our 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.
“If the Chancellor wants to deliver on No10’s promise of growth in every postcode then he must back business and cut costs. That means cutting employer National Insurance contributions for all under-25s, to help tackle the youth employment crisis.
“And it means a targeted tax reduction package to ease energy and business rate pressures for all firms.”
More detail on the labour market data can be found here.