Gradual East Mids unemployment fall not enough to ease pressure on businesses - Chamber says

Gradual unemployment fall in the East Midlands is not enough to ease immense pressure on businesses bracing for Employment Rights Bill and the risk of tax hike.

East Midlands Chamber has said 4.7% unemployment in the region remains too high and will ‘give little comfort to businesses bracing themselves for more costs’ unless changes are made to the pending Employment Rights Bill and rumoured tax rises in the Autumn Budget.

Latest data from the Office for National Statistics showed unemployment among over 16’s fell 0.1% between May and July 2025, following a drop from 5% to 4.8% in April to June.

East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “Filling vacancies with skilled candidates is essential for firms and while it’s encouraging to see movement in the right direction in recent months with unemployment having dropped slightly from 5% between March and May, the level is still far too high and will give little comfort to businesses bracing themselves for more costs

“Staff costs have rocketed with higher National Insurance contributions imposed on employers, a higher national living wage and soaring inflation.  Only half of East Midlands businesses have attempted to recruit, a figure that has fallen since the third quarter of last year, while six out of ten businesses in the East Midlands have struggled to find the staff they need, according to our Quarterly Economic Survey.

“Unless the Employment Rights Bill is changed from its current state, firms will be lumbered with a huge pile of extra paperwork and associated costs to contend with.  On behalf of our members, we’ve written to MPs across the region to push for crucial amendments to be made to the Bill.

“The Autumn Budget needs to be supportive of businesses navigating incredibly tough challenges right now.  With the government having already hit firms with higher costs in the last Budget, it is essential that we do not see tax hikes this year.”