Chesterfield employment figures Archives - Destination Chesterfield

Latest employment figures show ‘great resilience’ of East Midlands businesses

14th July 2023

Figures show that unemployment in our region has dropped for the second consecutive month, despite the overall UK unemployment rate rising by 0.2%.

The East Midlands’ unemployment rate has reduced to 3.3% for the period between March and May 2023, new figures by the Office for National Statistics (ONS) show.

It fell by one-tenth of a percentage point from the previous reporting period to April, moving in an opposite trajectory to the UK unemployment rate, which rose from 3.8% to 4%.

The region’s economic inactivity rate – 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 – dropped by three-tenths of a percentage point to 21.2%, the lowest level in a year.

East Midlands Chamber chief executive Scott Knowles said: “Despite some mild concerns earlier in the year that the unemployment rate was rising, it appears to have stabilised around historically very low levels, which reflects the great resilience of the East Midlands business community amid some very tough challenges.

“Rising economic inactivity has been one of the greatest concerns over the past year 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 significantly above pre-Covid levels, it’s pleasing to see this has now come down by just under 1.5% in the past nine months, giving firms more room to manoeuvre.

“Our own research backs this up but also illustrates persistent challenges, with our Quarterly Economic Survey showing seven in 10 businesses that attempted to recruit between April and June experienced problems in filling roles, compared to eight in 10 at the end of 2022.”

Nationally, regular pay grew by 7.3% during this period, a record annual increase despite lagging behind inflation, which stands at 8.7%.

Scott added: “While recruitment problems may be easing slightly, the record rise in wages suggests firms are still facing major cost pressures as the labour market tightness has forced employers to pay more for people at a time when they are being hit by inflation and surging interest rates.

“This is perhaps why future recruitment prospects are less optimistic, with a net 6% decline in East Midlands businesses adding to their headcount for the next three months. The proportion of firms intending to invest in training also declined by 3%, with business confidence fragile.

“What we desperately need is 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.

“In our Business Manifesto for Growth, we have set out a list of policies we believe will make the required difference, 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.

“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.”

East Midlands Chamber supports the marketing and economic growth of the town through Chesterfield Champions, a network of over 200 organisations across Chesterfield and North Derbyshire.

East Midlands unemployment rate hits another record low

17th February 2022

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.”