New figures show that unemployment has dropped to its lowest level across the East Midlands since the start of the pandemic.
Figures from the Office for National Statistics show the region鈥檚 unemployment rate fell to 4.1 per cent in the three months from July to September, down 0.2 per cent on the previous quarter and 0.2 per cent below the 海角视频 average.
East Midlands Chamber chief executive Scott Knowles said it was the lowest unemployment rate for the East Midlands since May 2020, when it stood at 4 per cent.
The rate peaked at 5.9 per cent earlier this year.
The positive news came as the ONS announced that the rise in the cost of living was at its highest in almost 10 years, hitting 4.2 per cent in the year to October. The rise is partly down to surging gas and fuel costs.
Mr Knowles said: 鈥淚t鈥檚 promising to see the jobs market growing again after the struggles of the past year and suggests the economy is moving in the right direction.
鈥淭he latest figures reflect how industries that are heavily represented in our region鈥檚 economy 鈥 including hospitality, retail, and leisure and tourism 鈥 are recovering well after the lifting of Covid-19 restrictions.
鈥淎t the same time, we鈥檝e also seen initiatives like the Kickstart Scheme 鈥 in which the chamber has played a key role as a gateway organisation to facilitate almost 1,500 job placements 鈥 contribute to helping young people, who had been disproportionately affected by Covid, find work.
鈥淲e expect the region鈥檚 jobs market to continue improving, with the latest data from the Chamber鈥檚 Quarterly Economic Survey (QES) for the third quarter of 2021 showing a net 25 per cent of East Midlands businesses saying they have increased headcount over the previous three months and a net 38 per cent expecting a rise in employment over the coming three months.鈥
National job vacancies hit another record high in October at 1.17 million 鈥 almost 400,000 higher than pre-Covid 鈥 as employers continued to struggle with skills shortages.
Mr Knowles said: 鈥淭he record number of vacancies highlights the acute hiring crisis faced by many businesses right now.
鈥淲hile two-thirds of companies attempted recruitment in the previous quarter, according to our QES, 71 per cent of this cohort said they faced problems with hiring the right people.
鈥淲hile some predicted the end of furlough would release more of the workforce back into the labour market to plug these issues, the continued rise in job openings suggests the problems go much deeper.
鈥淲e have skills gaps across the board that urgently need to be addressed 鈥 something that was highlighted most pertinently by the HGV driver shortage during the recent fuel supply crisis.
鈥淢any of these are longstanding but as Brexit and Covid have driven a more deep-seated decline in labour supply, they have come to the fore more prominently.
鈥淭he concern here is that an inability to address the skills gap and bolster productivity will dampen the economic recovery.
鈥淭his could become particularly problematic if inflation, which surged by 4.2 per cent in the year to October, continues to rise as it hits the bottom line of businesses 鈥 and therefore put a squeeze on the gains we鈥檝e made in employment.鈥
