Tight jobs market restricting growth and investment - Chamber

A squeezed jobs market is hampering the ability of businesses to invest and grow, business leaders have said.

Figures from the Office for National Statistics revealed the West Midlands employment rate fell by 0.6 per cent between February and April 2022.

Unemployment in the region also rose by 0.1 per cent over the same period, despite falling by 0.2 per cent nationally.

And while vacancies fell for the second consecutive quarter - a decrease of 34,000 in June to August - there are still 1.2 million unfilled jobs across the UK.

Greater Birmingham Chambers of Commerce said conditions have created a “perfect storm ” for businesses.

Emily Stubbs (pictured), senior policy and projects manager at the GBCC, said: “While firms struggle to navigate through the 'perfect storm ' created by the pandemic and now spiralling costs, an extremely tight labour market is further restricting their ability to invest and grow.

“Though we 've now seen vacancies decline for two consecutive months, these still represent over 1.2 million unfilled jobs across the country, and businesses across the region continuing to experience recruitment difficulties. The ONS has reported that such labour market conditions are restricting economic output across the UK.

“Further, as organisations desperately seek to mitigate rising costs by putting a hold on investment plans, this is impacting the training and development of staff, potentially creating bigger issues in the labour market down the road.

“It is hoped that the new Prime Minister 's welcomed commitments to tackling rising energy prices will limit inflation and cost pressures over the coming months. However, further, longer-term intervention, as outlined by the Chamber 's Policy Manifesto, will be required to free up cash for businesses to invest in their people and allow them to confidently plan ahead going into next year.

“We strongly encourage local businesses to complete the Chambers ' Quarterly Business Report survey to ensure that the challenges facing your organisation are understood by policy makers at a local and national level. ”

Complete the Q3 Quarterly Business Report survey here.

Read the GBCC 's Policy Manifesto here.