Responding to the latest labour market data, published by the ONS this morning, Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said:

“The increase in employment costs for business appears to be starting to bite with today’s data showing a rise in unemployment.

“This year’s steep increases in national insurance and the national living wage have undoubtedly delivered a shock to businesses.

“Vacancies continue to fall which aligns with our research, showing that, due to increased employment costs, many firms are now freezing recruitment plans, while others are being forced to reduce headcount.

“At the same time, wage growth continues to outpace inflation, adding further cost pressures for firms already facing rising overheads. Employment costs and pervasive skills shortages are a massive challenge for business, presenting big risks to investment and growth.

“This week’s Comprehensive Spending Review is a golden opportunity to invest more in the skills system – with apprenticeship reform and local skills improvement plans critical to solving the problem.

“The £5bn cost associated with the employment rights bill poses a further threat to firms’ investment plans. Without further amendment, the legislation will add even more to employers’ costs.”

Professor Miranda Barker OBE DL, CEO at East Lancashire Chamber of Commerce, commented:

“The depression in the employment figures is highly likely to be not only a product of increasing employment costs post-April, but also an increasing reluctance by businesses to take on new workers due to the Government’s drastic approach to employment law regulation.

“A Government/business partnership to grow the economy –  this is NOT.”

More details on the ONS data can be found here. 

For more news, click here.