east midlands business news

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

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 Chamber - Chesterfield office

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Resilient businesses to be celebrated at this year’s East Midlands Chamber Business Awards

The resilience of the East Midlands business community during a tough trading environment will be celebrated at a trio of upcoming awards ceremonies later this year – and firms are invited to put themselves forward for recognition.

Entries are now open for the East Midlands Chamber Business Awards 2023, which includes three gala dinner celebrations in Derbyshire, Leicestershire and Nottinghamshire.

Businesses, charities and individuals from each county will be recognised across 14 categories, ranging from Outstanding Growth and Excellence in International Trade through to Environmental Impact and an Education and Business Partnership Award.

Headline partner Mazars will also select a Business of the Year winner for each county.

East Midlands Chamber chief executive Scott Knowles said: “With the cost-of-doing-business crisis following hot on the heels of the pandemic and Brexit, the past few years have been as tough a trading environment as many of us can recall.

“Despite this, we’ve seen tremendous resilience on display among our region’s business community, which has found new ways to grow, innovate and collaborate.

“We are once again hugely excited about celebrating these achievements in our Business Awards, which are always one of the most highly-anticipated events in the Chamber calendar – thanks to the sponsors that help to make it happen.”

The deadline for the East Midlands Chamber Business Awards 2023 is Monday 17 July.

Finalists will be announced at a president’s summer celebration on Thursday 24 August and they will then have a chance to state their case at virtual judging panels taking place on the week commencing 11 September.

A gala dinner to celebrate the Chamber’s Derbyshire Business Awards will take place on Friday, 17th November 2023.

To enter the East Midlands Chamber Business Awards 2023 or to find out about sponsorship opportunities, visit www.emc-dnl.co.uk/services/business-awards

East Midlands Chamber Business Awards 2023 categories

  • Business Improvement through Technology
  • Community Impact Award
  • Outstanding Growth Award
  • Environmental Impact Award
  • Commitment to People Development Award
  • Apprentice of the Year
  • Entrepreneur of the Year
  • Education and Business Partnership Award
  • Excellence in Customer Service
  • Excellence in International Trade
  • Small Business of the Year
  • Excellence in Innovation
  • Excellence in Collaboration
  • Business of the Year

Derbyshire Business Awards winners

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Signs of growth and confidence among businesses for year ahead, finds East Midlands Chamber study

After suffering a series of knocks over the past three years, East Midlands businesses are finally optimistic about what 2023 could bring, according to new research into the state of the region’s economy.

Uncertainty has been replaced with confidence, there has been a turnaround in sales and companies are now expecting to employ more people once again, East Midlands Chamber’s latest study illustrates.

Economic indicators covered by the business representation group’s Quarterly Economic Survey (QES), which is delivered in partnership with the University of Leicester School of Business, have been largely negative since the end of 2021, but they are all now heading in the right direction during the first quarter of 2023.

East Midlands Chamber director of policy and insight Chris Hobson said: “Following an uncertain end to 2022, these latest findings demonstrate how businesses are beginning 2023 by displaying signs of growth and an increasing confidence for the year ahead.

“Sales and advanced orders are steadily growing, cashflow is improving – although there are still significantly more businesses reporting a decline in cashflow (35%) as opposed to an increase (22%) – and price pressures continue their gradual drop-off.

“The relative certainty in the policy environment, at least compared to the constant flip-flopping that came before, is now leading to a significant upturn in business confidence and, therefore, investment intentions, which are crucial if we are to steer the economy back on track and achieve consistent growth.

“While the region’s unemployment rate has been at historically low levels in recent times, our research had shown a decline in employers recruiting – mainly due to an extremely tight labour market driven by escalating numbers of economically inactive people since the dawn of the pandemic combined with longstanding skills shortages.

“So it’s pleasing to see a positive swing, with a 7% increase in the proportion of businesses recruiting in the past three months and a 14% improvement in those expecting to add to their workforce before the summer, as this generates jobs and prosperity locally.

“While all this paints a far healthier picture than at the end of 2022, caution is required as many of these indicators are still down from where we were a year ago.

“We are moving slowly in the right direction but Government support is still required to ‘get the basics right’ by knocking down the everyday barriers to doing business, and then backing our firms to grow the economy by focusing on the ‘four Is’ – investment, innovation, infrastructure and international trade – all of which is laid out in our Business Manifesto for Growth.”

East Midlands Chamber QES Q1 2023 data

Key findings from the Quarterly Economic Survey Q1 2023 for the East Midlands*, which was completed by 347 organisations between 13 February and 9 March, included:

  • UK sales grew by a net 1% between Q4 2022 and Q1 2023, with UK advanced orders up by 15%. Overseas sales and advanced orders were both up by 6% quarter on quarter
  • A net 12% of businesses added to their headcount in the first three months of 2023, marking a 7% increase compared to the previous quarter, while a net 30% of firms expect to recruit new staff in the next three months – a 14% increase
  • Recruitment problems persist but are dropping off gradually – six in 10 (59%) businesses attempted to recruit in Q1 2023 and, of those, 73% faced problems filling roles, but this was down from 81% in Q4 2022
  • A net 52% of businesses expect they will be forced to raise prices as they grapple with rising costs for people, energy, raw materials and fuel – although this is down from 57% in the previous quarter
  • While a net 13% of firms reported a decrease in cashflow, there was a 4% positive swing
  • Investment intentions are now trending upwards, with a 12% increase quarter on quarter in the net proportion of firms saying they will invest in training and a 6% rise for investing in plant and machinery
  • Business confidence is now in positive territory, with a net 39% optimistic about growing turnover over the coming year – a 15% rise compared to last quarter – and a net 8% (up by 11%) expecting to improve profitability.

Professor Mohamed Shaban, associate dean for business and civic engagement at the University of Leicester School of Business, said: “The survey results are yet another testament to the resilience of businesses in the East Midlands.

“Despite the challenges in the past few years, businesses have successfully navigated their way through the uncertain domestic and global economic environment.

“Businesses have endured credit tightening, an inflationary environment, supply chain disruptions and skilled labour shortages, which have collectively hindered the possibilities for growth.

“New initiatives are required to support businesses to invest in technologies that help them achieve higher levels of automation, nudge them towards net zero goals and empower them to invest in upskilling employees.”

Commerce House

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East Midlands Manufacturing Network reaches 150 members a year after launch

A business network which brings together manufacturers across our region is celebrating success, achieving a membership of more than 150 businesses within its first year.

The East Midlands Manufacturing Network was set up by East Midlands Chamber in March 2022 in recognition of the importance of the manufacturing industry to the wealth and prosperity of the East Midlands.

The network was an initiative that formed part of the UK Community Renewal Fund-backed East Midlands Accelerator project run by the Chamber, although the business representation group always had the intention of continuing its support for the long term.

The Chamber recognised that very often, the challenges manufacturers face can be tackled via collaboration with others and engagement with the right people, through the right channels.

With its connections to Government, local authorities, landowners, the region’s other support agencies and universities, it is well placed to help manufacturers navigate a multitude of issues ranging from planning control to lack of expertise.

East Midlands Chamber deputy chief executive Diane Beresford said: “It’s a challenging time for manufacturers. More than any other sector, they’ve been hit by the meteoric rise in energy costs and raw materials, against a backdrop of recruitment issues.

“The reason the membership continues to grow is because the network offers very real and valuable support, and a safe space to share the concerns of running a manufacturing business at the present time. We’ve already seen several interesting collaborations that have sprung from the network.

“One area which we’re particularly keen to develop is the concept of technology forums. We know that digital technology is an important growth enabler for manufacturers.

“In the spirit of collaborative learning, we’d like to develop a roadshow where network members can host such forums to showcase how they have embraced technology. Sharing best practice and lessons learned in this way is undoubtedly of huge benefit to those members at an earlier stage of the same journey.”

Network meetings are held every six weeks in Nottinghamshire, Derbyshire, North Nottinghamshire and Leicestershire.

Topics to be covered are varied, and set by the membership in that area. They might include an update from Make UK, information on the adoption of Made Smarter in the East Midlands, an outline of Digital Upscaler technology support from the Chamber, or an announcement on the latest tailored manufacturing support on offer from the universities.

All meetings begin at 7.30am and end no later than 10am. Agendas for each meeting are added in advance to the https://www.emc-dnl.co.uk/services/east-midlands-manufacturing-network/ page of the Chamber’s website.

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 Manufacturing Network

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East Midlands Chamber launches Business Manifesto for Growth to develop region as a ‘Centre of Trading Excellence’

“Back the East Midlands to back the UK” is the opportunity being put to politicians today (Thursday 24 November) by East Midlands Chamber as it launches a blueprint for economic growth in this region and beyond.

Delegates from the chamber of commerce for Derbyshire, Nottinghamshire and Leicestershire, along with local businesses and MPs, visited Parliament to unveil the 12-page document, titled A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond.

It includes “The Big Opportunity” to further develop the East Midlands as a “Centre of Trading Excellence”, which reflects the region’s key assets in its industrial heritage, leading-edge universities, central location, and the country’s largest pure freight airport.

The Chamber, which represents more than 4,000 businesses, also calls on policymakers to “get the basics right” by outlining what businesses need now to succeed and take advantage of emerging opportunities via a series of key policy asks, covering people, taxation and regulation, and connectivity.

It then urges Government to “grow our competitiveness the right way” by doubling down efforts on net zero and the wider environmental, social and governance (ESG) agenda.

East Midlands Chamber chief executive Scott Knowles said: “We’ve long spoken about our region being a place that’s great for making things, moving things and innovating in how we do this.

“These strengths really came to the fore during the pandemic and shone a spotlight on our region being a Centre of Trading Excellence, which is about businesses wanting to trade more, trade differently, trade with new partners, and trade in a way that is cleaner and more effective.

“The former Bank of England governor Mark Carney once remarked on how the East Midlands is a bellwether of the UK’s economic health, as we proportionately have more manufacturing businesses and jobs than other regions but we’re not overly reliant on any single sector.

“In many ways, we are a microcosm of the national economy outside London, so our message to Government is if you want a blueprint for what a successful economy looks like, then the key components exist in the East Midlands.

“Creating a policy environment that helps businesses here to succeed can be replicated elsewhere, which ultimately spurs more trade that boosts the national economy, creates more jobs and improves people’s life outcomes. This is why we call on the Government to back the East Midlands to back the UK.”

By responding to a string of policy asks, the Chamber says Government can “establish a formula that will help to deliver on key goals to level up, reboot the economy and boost post-Brexit growth in global trade”. The manifesto covers three key pillars:

  1. The Big Opportunity: Develop the East Midlands as a Centre of Trading Excellence by focusing on the ‘four Is’:
    1. Incentivise longer-term private sector investment at more generous levels
    2. Support greater levels of innovation through enhanced R&D packages and easier links into universities
    3. Improve infrastructure by raising the current level of public investment in the region to parity with the national average
    4. Cut red tape and reduce barriers to international trade, increasing incentives for those looking to grow their international presence or enter new markets for the first time
  2. Getting the basics right: Provide the levers to drive growth via the cultivation of a wider business ecosystem geared around supporting success, which should:
    1. Focus on incentives to invest in people
    2. Support certainty for businesses by developing a long-term approach to business taxation and regulation
    3. Ensure businesses and communities are digitally and physically connected locally and with the wider world
  3. Growing our competitiveness the right way: Now is not the time to go back on the commitments we have made as a country to sustainability and the net zero agenda. The Chamber, whose research shows ESG is rising up the agenda for businesses, says long-term planning allows businesses to grow sustainably and create opportunities for the UK to be world leaders in the products and processes that will drive global growth for decades to come.

A previous Business Manifesto for Growth published by East Midlands Chamber in 2018, titled Delivering A Great Future, called for a dedicated delivery vehicle to create a zone of ultra-high growth in logistics and advanced manufacturing hinged around East Midlands Airport and a linked free trade zone.

This set the wheels in motion for what would eventually lead to the East Midlands Freeport and East Midlands Development Company being established.

A Centre of Trading Excellence aims to maximise the impact of these initiatives while reinforcing the typical barriers to doing business and reiterating the importance of Britain fully committing to net zero.

After its launch at a special Westminster event – which featured speeches from Nottingham North MP Alex Norris and Broxtowe MP Darren Henry – the document will be used by the Chamber in policy discussions with MPs and Government officials to illustrate priorities of the region and its businesses.

The manifesto has received support from key businesses. East Midlands Airport’s managing director Steve Griffiths said: “East Midlands Airport is an engine of growth in its own right. Its role as an international gateway gives businesses in this region a competitive advantage when trading globally. As such, EMA has been the catalyst for much investment across the region in recent years.

“I’m delighted the Chamber is building on the gains already made and will help make the case to Government for increased recognition of the importance of our region and everything we have to offer the UK economy.”

David Williams chairman at East Midlands-based law firm Geldards, added: “The East Midlands region is renowned as an outstanding growth hub both for start-up businesses and established firms alike.

“As well as benefiting from transport links boosting connectivity to and from the region, the innovative development programme of regenerating brownfield sites is transforming our cities and wider region into a world-class arena to conduct business. It’s time for MPs to take note and recognise we are a region to be reckoned with.”

To read A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, visit www.emc-dnl.co.uk/manifesto

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.

Scott Knowles, Chief Executive of East Midlands Chamber

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East Midlands Chamber responds to Prime Minister’s resignation

A statement from East Midlands Chamber; the organisation which represents businesses in our region, is appealing to Westminster to ensure there is a ‘clear path forward’ for firms in our area.

The Chamber’s Chief Executive, Scott Knowles was responding to today’s news that Prime Minister Boris Johnson has announced his resignation from the role. Mr. Johnson has confirmed he will step down in the autumn.

Scott commented: “One of the main purposes of Government should be to provide a stable environment for businesses to thrive – enabling them to create the jobs and life opportunities that underpin a successful country.

“But the paralysis of the past few days, with whole departments being effectively rudderless, heaps further uncertainty on firms at a time when they are already trying to navigate stormy waters.

“The insular focus within Westminster is diverting attention away from the everyday business of Government, in which the mission of creating economic prosperity in regions such as the East Midlands should be high on the priority list.

“We need to know what the plans are for levelling up and tackling the very real cost of doing business crisis, which is hampering firms’ ability to breathe life into an ailing economy.

“Big policy agendas are in a state of stasis. What’s important now is to have a clear path forward so that businesses can have confidence the big issues are going to be tackled.”

Find out more about Chesterfield’s successful ‘Levelling-up’ funding bid, which includes major plans to revitalise the historic Town Centre here: https://www.chesterfield.co.uk/developments/revitalising-heart-of-chesterfield/

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

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Research finds half of East Midlands businesses have an equality, diversity and inclusion strategy

Better workplaces, improved decision-making and increased innovation are among the benefits cited by East Midlands businesses that have an equality, diversity and inclusion (EDI) strategy, according to a new report.

Research by East Midlands Chamber, in partnership with housing association emh group, found that almost half (48%) of businesses in Derbyshire, Leicestershire and Nottinghamshire have a dedicated policy in place.

More than two-thirds (68%) consider EDI can contribute, at least to some degree, in the success of their business plans over the coming 12 months – while it was attributed as an important part of leadership strategy by 55% of firms.

When asked to give a score between one and 10 to how important consideration of EDI would be to the success of their organisation, the average score was 5.6 – suggesting that while it may not be integral to firms overall, it’s also not an insignificant consideration within business activity in the East Midlands.

The research will be presented at the Chamber’s Celebration of Culture and Communities event, which will be held tonight (24 March) at Leicester Tigers’ Mattioli Woods Welford Road stadium – showcasing the region’s diverse mix of cultural backgrounds via music, dance and food.

East Midlands Chamber director of resources at Lucy Robinson, who is the business representation organisation’s diversity and inclusion champion, said: “It’s clear from these findings that equality, diversion and inclusion is increasingly becoming less of a ‘nice-to-have’ for organisations and more business-critical.

“The majority of East Midlands businesses recognise an important role for EDI within their planning and activity, and there’s clearly a need for further support in helping those that identify its value but are yet to have policies in place.

“A core of roughly one in 10 feel it doesn’t play any role in their success. When examining this figure further, these businesses are more likely to be micro in size, with a very small bias towards the manufacturing industry.

“Given that those actively engaged in the EDI agenda have illustrated some very real commercial benefits – ranging from a better workplace culture, recruitment and retention, through to supporting innovation and a diversity of thought in decision-making – we should now be looking at how to better showcase good examples of business success in this agenda.

“We will also explore further work that may quantify how progressive approaches to EDI can result in productivity gains – which is high on the business priority list as they seek to grow once more following the pandemic.

Key findings in equality, diversity and inclusion research

The Chamber and emh group surveyed 341 East Midlands companies in November for the study – the first of its kind in the region – which found:

  • 48% of businesses have a specific EDI-related policy, but four in 10 (40%) haven’t and 12% were unsure whether they did
  • 68% felt having specific approaches to EDI would play a role in supporting the achievement of business plans for the next 12 months, with 26% believing this role would be significant and 11% saying it would play no part
  • 55% of respondents felt EDI formed an important part of their leadership discussions and strategy, with 14% saying this was to a great extent and 12% believing there was no EDI focus at all
  • When asked about the benefits of having an engaged approach to EDI, 61% said it can help create an inclusive working environment, 54% believed a “diversity of thought” could lead to better decision-making, 45% felt it supported innovation and creativity, 42% claimed it supported staff retention and recruitment, and 41% identified how it helped to better represent customers and clients – with just 17% seeing no real benefits

The research also highlighted some particular sectoral gaps across the East Midlands economy when it comes to embracing the EDI agenda.

While 48% of all businesses have a specific policy in place, the proportion fell to 43% for manufacturers – although those unsure increased to 20%, suggesting slightly less understanding or communication of EDI activity within these businesses.

Chan Kataria OBE, chief executive at emh group, said: “This research builds on our joint commitment to promoting diversity and inclusion within communities and organisations across the region.

“The findings provide a solid platform for exploring opportunities to enhance performance on EDI.

“We see this as a starting point for showcasing engagement on EDI issues and exploring some of the barriers within specific sectors and small businesses. We look forward to further discussions with Chamber members to consider and share good practice.”

How businesses can increase engagement with the EDI agenda

A set of recommendations were made as part of a discussion paper published by the Chamber and emh group, titled Understanding attitudes and approaches to Equality, Diversity and Inclusion in the East Midlands:

  • Further support on developing EDI-specific polices can be offered to those businesses that view these as having a value but are yet to have policies in place
  • Businesses that are active in this space should be encouraged to demonstrate their approaches and showcase best practice
  • There is an opportunity for further work to quantify how progressive approaches to EDI can support a business’ success and productivity gains

To read the full report, click here.

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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.”

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Figures show East Midlands businesses favour hybrid working approach

Three-quarters of East Midlands businesses don’t anticipate a wholesale return to pre-pandemic ways of working, according to new research by East Midlands Chamber and Air IT.

Greater flexibility is among the top reasons for a new hybrid working approach – where employees spend part of their week working from home and part of it in the office – as eight in 10 businesses say they have so far decided against a full-time resumption of office and other on-premise working.

The findings were revealed as part of the Chamber’s Quarterly Economic Survey, in which Air IT – a Managed Service Provider based in Nottinghamshire – commissioned a set of questions posed to business leaders regarding their views on the future of work, and whether it will revolve around the office or the home.

The research was conducted before the Government mandate to work from home where possible was reinstated.

East Midlands Chamber director of resources and HR lead Lucy Robinson said: “This research confirms what many Chamber members have been telling us in recent months, which is that they expect to embrace a hybrid structure of office and remote working in the future.

“It’s obviously not feasible for every organisation to take this approach and there’s still lots of jobs that can’t be done remotely, while it’s clear that the office will remain an important hub for collaboration between teams and developing the skills of younger employees.

“However, the disruption of Covid-19 has paved the way forward for a new mindset among some businesses that have witnessed a number of benefits from greater flexibility – including making it easier to attract and retain employees, as well as lower operating costs – and we expect to see a hybrid approach become significantly more popular in the long term.”

Main findings of the survey

Fewer than 20% of the 400 Derbyshire, Leicestershire and Nottinghamshire businesses that responded to the Q3 2021 survey, undertaken in August and September this year, said they had “totally” returned to pre-pandemic working patterns.

Meanwhile, 27% planned to do so in the future – with 66% maintaining they would only “mostly” or “partially” do so, and 7% that said “not at all”.

The findings suggest strong support for the hybrid working model, which has proven popular this year as businesses have sought to ease employees back into the workplace while retaining the benefits of working remotely.

But the report shows that, for many organisations, it is no longer a temporary solution – it is here to stay.

Focusing on flexibility, technology and wellbeing

For those planning to continue most, some or all their pandemic-induced working habits, one of the primary reasons was to do with travel, which many businesses are deeming less necessary after experiencing the benefits of video calls, online events and cloud computing.

When asked what has changed for their business, 78% of respondents cited greater flexibility in location of work, and more than half had reduced in-person events as well as local and international travel.

When asked about the implications of changes to working habits, the most popular answer was “increased investment in new technologies”, selected by 61% of respondents.

Another big change was that business leaders want to see increased investment in staff engagement and wellbeing, an option selected by 59% respondents.

Lee Johnson, chief technology officer at Air IT, said: “A lot of our work at Air IT recently has revolved around hybrid working and how we can support SMEs as they adjust to this new era. Technology has been arguably the biggest factor in keeping businesses going since the pandemic hit, so many business leaders are looking to update their IT infrastructure in order to stay ahead.

“Remote and hybrid working are here to stay so it’s important that businesses invest in supporting their employees through this transition, making it as easy as possible for them to do their job.”

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

Chamber celebrates helping 1,000 young people find job placements via Kickstart Scheme

East Midlands Chamber is celebrating after passing a major milestone – helping more than 1,000 young people to secure a job placement via the Kickstart Scheme.

The region’s leading business representation group has been commended by the Minister for Employment after playing a key role in assisting companies to create six-month work placements for people aged 16 to 24 who are on Universal Credit or at risk of long-term unemployment.

The Chamber is the UK’s largest and – with almost half the vacancies created resulting in a position being filled – top-performing gateway organisation, which lodges funding applications on behalf of businesses to the Department for Work and Pensions (DWP).

It celebrated the landmark achievement by welcoming key civil servants at the DWP to the Chesterfield Jobs Fair, hosted by Chesterfield Borough Council, earlier today (15 September).

East Midlands Chamber deputy chief executive and Kickstart lead Diane Beresford, along with education and business partnership manager Pieter Eksteen, also met with Jo Macdonald, who chairs the Kickstart gateway approvals board for the DWP, to explain how the Chamber has managed to secure so many placement starts among young people.

Diane said: “Young people have been disproportionately affected by the pandemic both in terms of their mental and physical wellbeing, and the significant amount of unemployment it has created.

“The Kickstart Scheme has therefore been a lifeline for them to get the skills and work experience that will be vital to their future prospects. We’re delighted with our track record in converting applications into real jobs, which have played a key role in giving young people the chance they may not have otherwise had while also enabling companies to trial new roles.

“We’re continuing to support businesses and job centres to place young people, as well as look beyond the six-month period to ensure there’s a future roadmap to full-time employment.”

How Kickstart Scheme has benefitted businesses and young people

Nick Hogan, owner of Chesterfield Escape Rooms, has hired six games masters via the Kickstart Scheme – with two other vacancies now live and an application for another position currently being processed – and joined the celebration event with Kickstart employee James Bryan.

Nick has entered into a joint venture partnership with some members of his Kickstart team to establish Chesterfield Games Quarter, which will comprise the escape rooms as well as a video games zone, virtual reality zone and the existing Geeks board game venue. Based in Soresby Street, it is due to open in October.

“I used the Kickstart scheme because I wanted to give something back to the town and create new opportunities for young people,” said Nick, who has given the team a five-figure, interest-free loan to the team to help it run the business.

“But it has also allowed me to get my foot into the market to assess the business opportunity, and has given me the confidence to now grow this into the Chesterfield Games Quarter concept.”

Freelance actor James, 22, of Chesterfield, (pictured above) is four months into his Kickstart placement at the escape rooms business after finding acting work opportunities deteriorated during the pandemic.

He said: “It’s been the opportunity of a lifetime to get involved with a new business, and gain some really valuable experience and diverse skills for my CV that will be really important for my future employability.”

How does the Kickstart Scheme work?

The DWP funds 100% of the age-relevant National Minimum Wage, national insurance and pension contributions for 25 hours a week over a six-month period.

Employers can choose to top up this wage and are also eligible for a £1,500 Government grant for training people on a Kickstart placement.

Once applications are accepted, young people are referred into the roles via a Jobcentre Plus work coach.

East Midlands Chamber has had more than 2,700 placements approved among almost 800 businesses located in Derbyshire, Leicestershire, Nottinghamshire and other locations. Of these, 2,200 have resulted in vacancies being created and 1,024 of those have now been filled.

Minister for Employment Mims Davies MP said: “It’s fantastic to see that over 1,000 young people have begun their Kickstart journey thanks to the vital support from East Midlands Chamber, in a range of exciting new roles, setting them on the road for their future careers – crucially part of the over 69,000 young people who have now started these jobs.

“Our Plan for Jobs is focused on creating and spreading opportunity just like this around the UK as we push to level up across the country.”

East Midlands Chamber and Chesterfield Escape Rooms support the marketing and economic growth of the town through Chesterfield Champions, a network of over 190 organisations across Chesterfield and North Derbyshire.

Posted in About Chesterfield, Business, Celebrate Chesterfield, Development, Home, Made in Chesterfield, UncategorisedTagged in , , , , , , , , , , ,

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