East midlands employment figures

Regional unemployment rate remains among lowest in the UK

The East Midlands’ unemployment rate has remained at 3.7% for the fifth month running, new figures by the Office for National Statistics (ONS) show.

It puts the region near the top of the list for having a low proportion of over-16s out of work and significantly below the UK average of 4.2%.

The data, for the period between August and October 2023, means the region’s unemployment rate has now been under 4% for the past two years, having last been above the threshold in the three months to October 2021.

The economic inactivity rate for 16 to 64-year-olds – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – remained at 20.9% for the East Midlands for the third consecutive month, above a pre-pandemic trend around the 19% mark.

East Midlands Chamber chief executive Scott Knowles said: “The fact our region’s unemployment rate has remained at a relatively low level for such a prolonged period is testament to the efforts and resilience of our region’s business community in the face of significant economic challenges.

“Rising economic inactivity has been one of the greatest concerns over the past couple of years as it led to a dwindling labour market, which has restricted capacity – and therefore the ability to grow, raise productivity and bring prices down.

“While this rate remains above pre-Covid levels, it’s pleasing to see this has now come down by about 2% throughout this year, giving firms more room to manoeuvre.

“However, our own research shows there is no room for complacency. Our Quarterly Economic Survey shows a net 7% of businesses have increased their workforce during the final three months of 2023, compared to a net 15% in the previous quarter – an indication of the tough trading challenges that persist. Over the next three months, a net 17% expect their workforce to expand in size, so prospects may improve.

“Many employers continue to face challenges with filling job vacancies. More than half (55%) of organisations attempted to recruit during Q4, and more than seven in 10 (72%) of these experienced problems in finding suitable staff. There are particular shortages to fill skilled manual and technical roles, as well as professional and managerial positions.”

East Midlands Chamber published its regional economic blueprint, titled A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, in November last year, urging Government to focus on the “four Is” of investment, innovation, infrastructure and international trade.

It set out a list of policies to encourage businesses to invest in their people, including introducing flexible incentives for businesses that invest in staff training and bringing forward the introduction of the Lifelong Loan Entitlement to support retraining and the retainment of an older workforce.

Scott added: “We really need a dedicated Government policy that supports companies to invest in their people, whether that be in upskilling their existing workforce or reskilling prospective employees to fill skills gaps.

“We must also tailor policies to recognise the diversity of people who are out of work and avoid a one-size-fits-all solution. We would also like to see Government work with businesses to offer support, and share best practice, on what a flexible and inclusive workplace looks like as this is another vital ingredient in enticing people back to work.”

To read the Chamber’s Business Manifesto for Growth, A Centre of Trading Excellence, visit www.emc-dnl.co.uk/manifesto.

 

Scott Knowles

Scott Knowles, Chief Executive of East Midlands Chamber

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East Midlands unemployment rate hits another record low

The East Midlands’ unemployment rate continues to drop – once again hitting its lowest point on record, new figures show.

It was 3.4% for the period between October and December last year, compared to a 4.1% national average.

This is the lowest level since the Office for National Statistics (ONS) began publishing regional labour market figures in April 2015, and is higher than only four other regions – East of England, South West, Wales and Northern Ireland.

East Midlands Chamber chief executive Scott Knowles said: “After falling to 3.5% in the previous reporting period, it’s fantastic news for the region’s labour market that the unemployment rate has fallen to a new record low, which sends a clear signal that the East Midlands is open for business.

“It reflects our own research that indicates our region’s firms are creating jobs to meet strong demand following the effects of the pandemic. The Chamber’s latest Quarterly Economic Survey (QES) for Q4 2021, covering the same period as the ONS figures, showed two-thirds of companies attempted to recruit, while a net 35% expected to increase their headcount in the first three months of 2022.

“We are represented by a very diverse economy in the East Midlands but there have been some standout sectors to celebrate in recent times, such as a logistics industry that has been a major driver of job creation during the pandemic, which has accelerated pre-existing online shopping trends.”

However, the East Midlands economic inactivity rate – which measures the proportion of 16 to 64-year-olds who have exited the labour market for reasons such as retirement, caring duties or studying – was above the 21.2% national average at 21.9%. It recorded the largest increase compared with the previous year at 1.7 percentage points.

Another key finding in the ONS data was that UK wage growth continues to lag behind the rising cost of living – representing a 0.8% fall when taking inflation into account.

The ONS said early estimates suggest employers are beginning to push up wages further and faster – with median monthly wages in January increasing by 6.3% compared with the same month last year, and 10.3% higher than before the pandemic in February 2020.

Scott added: “Despite the positive trajectory in unemployment, businesses are still encountering major recruitment challenges in a super competitive jobs market, as evidenced by yet another record of 1.3 million job vacancies nationally between November and January.

“The significant rise in the proportion of people exiting the labour market in the East Midlands means there are fewer people to choose from – a worrying trend at a time when companies are desperately trying to fill roles to cope with demand, which will enable them to continue growing and creating more opportunities for local people.

“Many companies in traditional industries such as manufacturing and construction often tell us about the difficulties in replacing an ageing workforce with younger talent, and the latest QES showed that eight in 10 of those that attempted recruitment struggled to find people with the right skills.

“All this highlights the importance of investing heavily in skills, something that was highlighted in the Government’s Levelling Up White Paper as one of its 12 ‘missions’ but must now be prioritised with rapid action to ensure our post-Covid and post-Brexit economic recovery doesn’t stall.”

 

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East Midlands unemployment rate hits lowest point in seven years – but Chamber warns of recruitment challenges

The East Midlands’ unemployment rate has fallen to its lowest point on record, new figures show.

It was 3.5% for the period between September and November last year, compared to a 4.1% national average.

This is the lowest level since the Office for National Statistics (ONS) began publishing regional labour market figures in April 2015, and represented the smallest proportion of the workforce being unemployed since the three months to December 2019, when the rate was 3.6%.

It also marked a significant drop on the previous reporting period for August to October 2021, when the region’s unemployment rate was on par with the UK average at 4.2%.

East Midlands Chamber chief executive Scott Knowles said: “This is fantastic news for the region’s labour market and sends a clear signal that the East Midlands is open for business.

“It reflects our own research that indicates our region’s firms are creating jobs to meet strong demand following the effects of the pandemic. The Chamber’s latest Quarterly Economic Survey (QES) for Q4 2021 showed two-thirds of companies attempted to recruit, while a net 35% expect to increase their headcount in the first three months of 2022.

“We are represented by a very diverse economy in the East Midlands but there have been some standout sectors to celebrate in recent times, such as the logistics industry that has been a major driver of job creation during the pandemic, which has accelerated pre-existing online shopping trends.”

Tightening labour pool presents acute challenge for businesses

While the East Midlands has one of the lowest unemployment rates for over-16s in the UK, the economic inactivity rate for people aged 16 to 64 rose from 21.02% to 22% in the most recent reporting period.

UK job vacancies also soared to a record high of 1.24 million between October and December – 462,000 higher compared with the three months before the pandemic.

Scott added: “Despite the positive trajectory in unemployment, businesses are still encountering major recruitment challenges in a super competitive jobs market.

“The 0.8% increase in the economic inactivity rate represents a rise in the number of people who have opted out of employment, whether it’s for studying, caring or to take early retirement – with the latter being a noticeable trend during the pandemic.

“This means the labour pool is tightening at a time when companies are desperately trying to fill roles to cope with demand, which will enable them to continue growing and creating more jobs for local people.

“Many companies in traditional industries such as manufacturing and construction often tell us about the difficulties in replacing an ageing workforce with younger talent, and the latest QES showed that eight in 10 of those that attempted recruitment struggled to find people with the right skills.

“As we await publication of the Government’s delayed Levelling Up White Paper, the wider context behind the latest ONS data illustrates the need for policymakers to understand how we can pull the right levers in order to support the local economy’s requirements.”

Posted in About Chesterfield, Business, Destination Chesterfield, Development, Home, UncategorisedTagged in , , , , , , , ,

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