UK unemployment has remained at 5.1%, a five-year high, according to the latest official data.
Figures from the Office for National Statistics shows that unemployment among people aged 16 and over has risen across the UK by 0.3% compared with the previous quarter. London and the East Midlands have seen particularly challenging results. Unemployment in London now exceeds 7%, while in the East Midlands the quarterly increase of 1.5% has taken the unemployment rate to 6.0%.
Jobs in retail and hospitality appear to be disproportionately affected.
Responding to the latest Employment data, Neil Davy, Chief Executive, FBUK, said:
Employment data continues to paint a picture of businesses cutting investment as they worry about the increasing cost of doing business. With unemployment stuck at more than 5% we need to see policies that give a clear vote of confidence to Britain’s private and family businesses.
Changes to Inheritance Tax, Employer National Insurance, the National Living Wage and Business Rates, all delivered since this Government took office, have brought key business decisions to a halt. With international uncertainty again raising the prospect of increasing costs further stifling growth, the Government must do everything it can to incentivise British businesses to invest and grow.
The Government has shown strength by accepting that certain policy choices have been detrimental to business. The pre-Christmas concession on inheritance tax for family businesses and farms was a welcome step but it does not go far enough. Without an immediate review of the policy, and a full reversal, Britain’s private and family businesses will continue to face difficult decisions on employment and investment, making it harder for the Government to achieve its growth mission – it’s stated objective.