BCC: Rise in unemployment emphasises need to allow business to create jobs

Commenting on the labour market figures released today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“These figures are disappointing, but not surprising given the worrying trends that have been apparent in recent months. They support the BCC’s forecast that unemployment is set to reach 2.65 million later this year. 

“In addition to a rise in unemployment that reverses recent declines, we have witnessed a large fall in employment and a sharp increase in inactivity. The number of people working part-time has risen to a record high. 

“Whatever the result of the election, a new Government must enable businesses to invest and create jobs. Scrapping the proposed employer National Insurance increase next year appears even more important in the light of these figures. It is equally important that the regulatory burdens on business are limited in the coming years.” 

Dr Adam Marshall, Director of Policy at the BCC added:

“As the election campaign continues, there are two additional issues that must be addressed.

“There are over one million ‘under-employed’ people in the UK – people who want to work full-time but are unable to do so. This could have a significant effect on the recovery, and makes scrapping the costly NICs increase all the more important.

“Despite the UK’s huge deficit, the figures also show that public sector earnings are still increasing at more than double the rate of private sector earnings. This is unsustainable - and must be addressed whatever the result of the election.”

Posted 21st Apr 2010  by member Cornwall Chamber of Commerce & Industry