Reacting to the latest labour market data from the ONS, Patrick Milnes, Head of People and Work at the British Chambers of Commerce, said:
“While it’s welcome that unemployment eased slightly in the three months to August, the jobless figure remains stubbornly high at 4.7%.
“With the number of vacancies falling further, urgent action is needed in the Budget to change the dynamics around hiring.
“Businesses are suffocating under a mountain of costs which means expansion plans are being put on hold and young people are missing out on job opportunities.
“Our latest research shows labour costs are the top pressure for businesses, cited by 69% of firms.
“The BCC’s most recent economic forecast suggests youth unemployment could hit 16.6% by year end, as firms creak under the pressure of high employment costs.
“The Chancellor must take a bold approach in his Budget, next week. Any further tax increases on business would be calamitous for growth and jobs.
“Instead, he must pivot to easing the cost burden. That means cutting employer National Insurance contributions for all under-25s.
“He must then go further with 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.