East Mids unemployment figure falls slightly, Chamber calls for more support for firms to tackle incoming challenges

Supportive policies that protect businesses from higher costs and increased paperwork must be prioritised, the East Midlands Chamber has said, despite new figures showing a drop in the region’s unemployment.

Latest data from the Office for National Statistics revealed unemployment among over 16’s has fallen from 5% to 4.8% during April to June 2025, while average total earnings growth across the UK for the same period has fallen to 4.6%.

East Midlands Chamber Chief Executive Scott Knowles said: “While falling unemployment and easing wage growth is a welcome sign for businesses, 4.8% unemployment among over 16’s is still too high. Getting more people into jobs is essential for economic growth but with six out of ten firms in the East Midlands reporting in our Quarterly Economic Survey that they have struggled to find suitable candidates – which underlines the extent of the skills gap – it’s just as alarming that only half have attempted to recruit new staff and that figure has fallen 7% over the last three quarters.

“Pulling back on the intention to hire aligns with the general sense of fragile confidence firms are experiencing right now, such as a downturn in expectation of profitability in the months ahead and corporate taxation near the top of concerns reported in our survey. With the costs employers have to cover having increased this year, due to things like higher National Insurance contributions and a higher national living wage, it’s essential the pressure on firms isn’t dialled up even further.

“The Employment Rights Bill needs to be changed before it gets Royal Assent – it’s filled with measures likely to increase the burden of paperwork, like preparing for day 1 statutory sick pay or the need to consider changes to employment contracts. We’ve already written to the region’s MP’s on behalf of our members, outlining amendments that should be made.  The government must ensure the Bill works for businesses, while the Autumn Budget must not further push up taxes and increase the level of challenges firms face.”