The number of out of work adults in the East Midlands rose fractionally in the three months to November, amid concerns the figure could get worse.
As the cost of living crisis hits industry, there are concerns the 3.4 per cent unemployment rate could start heading upwards.
East Midlands Chamber said unemployment has been steadily rising since the record low of 2.4 per cent last summer, even though it is still below the national average of 3.7 per cent.
At the same time the region’s economic inactivity rate – the number of adults not working due to things such as retirement, caring duties, long-term ill health or studying – dropped fractionally to 22.3 per cent, but is still close to record highs.
Despite worries that things could get worse, some employers are still looking for workers.
East Midlands Airport needs more than 100 people to fill roles in areas such as security, customer services, assisted travel and car parking, for what it expects will be its busiest year since 2019.
Hospitality company Delaware North also has vacancies at and is advertising for a concessions assistants, IT support, till operators, as well as restaurant and bar staff.
A new Aldi new store, which is part of the Swinfen Vale scheme currently underway in Ellistown, near Coalville, needs 40 full and part time staff.
Most Read
Meanwhile, Leicester Jobcentre Plus and b-inspired are holding a jobs fair at The Grove Community Hub, in Braunstone, between 10am and 1pm on the January 26, while there is a recruitment event at the Loughborough Careers and Enterprise Hub on February 17, focusing on the 50+ age group.
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 per cent 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 21st century industry.
Don’t miss
“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.”