Chamber calls for more supportive policies for businesses as unemployment rises to 5% in the East Midlands

With unemployment among over 16s in the region having risen to 5%, East Midlands Chamber has renewed calls for supportive policies from the government, including amendments to the Employment Rights Bill currently going through the report stage at the House of Lords and assurance that firms are not hit with a greater tax burden at the Autumn Budget.

The latest East Midlands unemployment figure from the Office for National Statistics, now 0.3% above the level for the UK, covers March to May 2025 and is the highest level since April to June of 2024. 

East Midlands Chamber Director of Resources Lucy Robinson said: “Only half of East Midlands businesses have attempted to recruit new staff, down 7% over the last three quarters, while only 2 out of 10 expect their workforce to increase - also down from three quarters ago - according to the findings of our latest Quarterly Economic Survey for the region.

“Although only a slight fall in attempted recruitment and expectation for the months ahead, a downward trend gives cause for some concern straight away, especially when you consider the surrounding context of the increased outgoings employers have been hit with this year – higher National Insurance contributions and a higher national living wage, for example.

“Add to that context soaring inflation, now at 3.6% and the Employment Rights Bill currently working its way through Parliament, which unless changed before it gets Royal Assent brings a whole new bunch of challenges from how employment contracts are written and the impact of any changes made to them, to day 1 statutory sick pay, for example and you create a bigger headache for employers.

“With the fragile confidence businesses in the East Midlands have at the moment, it’s essential policy makers put the needs of firms front and centre.  The Autumn Budget is fast approaching and must not hit businesses with further tax hikes, while the Employment Rights Bill needs to be amended to protect firms, especially SMEs, as if unchanged could lead to disputes and claims from employees. That’s why we’ve written to MPs in the region on behalf of our members, as has the British Chambers of Commerce at national level, to urge the government to make key amendments to the Employment Rights Bill before it goes through.”