Employment statistics 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 remains low but Chamber research warns this could be set to rise

17th January 2023

The proportion of working-age people in the East Midlands who are not in jobs rose slightly from 3.3% to 3.4% in the three months to November, new figures show.

The region’s unemployment rate – which hit a record low of 2.4% in summer 2022 before steadily climbing since – remained below the UK average of 3.7%, according to the Office for National Statistics’ latest regional labour market data published today (17 January).

Meanwhile, 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 one-tenth of a percentage point to 22.3% but this remains near record highs.

East Midlands Chamber chief executive Scott Knowles said: “After an upwards trajectory in the level of unemployment since the summer – although against a context of still being at historically low levels – it is reassuring to see this curve begin to flatten in recent months.

“However, our own research suggests unemployment levels may not remain so low in the future. Our final Quarterly Economic Survey of the year, which ran throughout November, found there was an 8% decline from quarter to quarter in the proportion of East Midlands businesses that added to their workforce in the previous three months, while there was a similar drop-off in recruitment prospects over the coming three months.

“Clearly, the cost-of-doing-business crisis – led by rising costs in energy, interest rates, raw materials, people and fuel – has deeply affected business confidence to invest, and a lack of available skills in the labour market is now impacting significantly on firms’ ability to grow.

“While the slight decrease in the proportion of those people who have opted out of the workforce for various reasons is welcomed, this remains at a very high level and has helped to create the tightest labour market in years.

“This poses a major concern for the road ahead as our economy continues to plateau but there are measures the Government can take to support businesses to develop a skills base fit for 21^st century industry.

“In our Business Manifesto for Growth launched in Parliament last month, we propose a series of reforms around how businesses invest in their people.

“These include flexible incentives for business investment in staff training, expanding the use of the apprenticeship levy, bringing forward the introduction of the lifelong loan entitlement to support retraining and the retainment of an older workforce, and a comprehensive reform of the shortage occupation list to allow sectors facing urgent demand for skills to get what they need.

“In other words, this is about ‘getting the basics right’ – removing the day-to-day barriers for businesses and ensuring the basic building blocks of economic success are in place.”

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.