Business reacts to latest unemployment figures

As the latest figures reveal that UK unemployment has increased, business groups are highlighting the need for an incoming Government to invest and create jobs.

Data released by the Office for National Statistics (ONS) shows that the number of people out of work in the UK rose by 43,000 to 2.5 million during the three months to February.

The British Chambers of Commerce (BCC) has described the figures as ‘disappointing but not surprising,’ and is now calling on ministers to make the changes necessary to ensure that businesses are able to take on more staff during the economic recovery.

‘Whatever the result of the election, a new Government must enable businesses to invest and create jobs,’ commented David Kern, Chief Economist at the BCC. ‘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.’

Meanwhile, the Federation of Small Businesses (FSB) has warned that the latest statistics confirm that the recovery is still ‘too fragile’ for small firms to take on extra staff.

In a survey of over 1,400 of its members, some 63% said they plan to keep employment levels on hold over the next three months.

John Walker, FSB National Chairman, said: ‘The rise in unemployment confirms that the economy is still too fragile for small businesses to take on new staff. […] The ‘FSB Voice of Small Business Index' shows that small firms are at the heart of the recovery but still need support if they are to get us firmly on that road to recovery and if they are to begin taking on staff again.’

He added: ‘The FSB is calling for a renewed economic stimulus to help small businesses continue to create jobs, get access to crucial finance, innovate and start up new businesses, to get us squarely on the road to recovery.’