Spring Budget must solve economic inactivity issue, says East Midlands Chamber as latest labour market data released

Added by Love Business East Midlands | 14 March 2023

UPDATED: 14 March 2023

There was a slight decline in the region’s economic inactivity rate – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – which was down four-tenths of a percentage point to 22.3%.

 

However, this remains 1% above the UK average and among the highest levels in recent times, having been 18.7% in the three months to March 2020 when Covid-19 lockdown began.

East Midlands Chamber chief executive Scott Knowles said: “The consistently low unemployment rate, like the recent ONS analysis showing UK GDP grew slightly in January, demonstrate the resilience of the East Midlands business community in protecting jobs despite the upheaval and cost pressures of the past year.

“The Chamber’s latest research suggests there is further optimism for what lies ahead, with our Quarterly Economic Survey for Q1 2023 showing a 7% net increase in the proportion of our region’s firms that have grown their workforce in the past three months, along with a 14% net increase in those that expect to add to headcount in the next three months.

“However, there is still a long way to go and this must start with tackling the economic inactivity problem that, despite a very slight decline in the latest data, continues to be a thorn in the sides of many employers.

“There are many reasons for this, including long-term sickness, increased caring responsibilities and early retirement. It has been widely anticipated the Chancellor will announce a plan in tomorrow’s Spring Budget to bring these people back into the workforce, which would be welcomed, but it’s crucial any measures bring tangible outcomes.

“In our Business Manifesto for Growth, we have set out a list of policies we believe will make the required difference, including introducing flexible incentives for businesses that invest in staff training and bringing forward the introduction of the Lifelong Loan Entitlement to support retraining and the retainment of an older workforce.

“We must also tailor policies to recognise the diversity of people who are out of work and avoid a one-size-fits-all solution, while we would also like to see Government work with businesses to offer support and share best practice on what a flexible and inclusive workplace looks like as this is another vital ingredient in enticing people back to work.”

To read the Chamber’s Business Manifesto for Growth, A Centre of Trading Excellence, visit www.emc-dnl.co.uk/manifesto.

MEDIA INVITE: East Midlands Chamber will host a roundtable of business leaders to discuss the Spring Budget tomorrow from 12-2pm, held at Geldards LLP’s office in NG2 Business Park, Nottingham, NG2 1EN.

There will be opportunities to listen to interview Chamber representatives and business leaders from a wide range of sectors and geographies within the region. If you would like to attend, please contact Dan Robinson on dan.robinson@emc-dnl.co.uk

< Back