Commenting on the labour market statistics recently released by the Office for National Statistics, Nova Fairbank, Public Affairs Manager for Norfolk Chamber said:
“While the UK unemployment rate remains historically low, the second successive drop in UK employment suggests that labour market conditions are moderating a little. However, the drop in both UK unemployment and employment was at least partly due to the rise in people who are now classed as economically inactive.
“This picture was partially reflected locally, where the overall unemployment count rose slightly from 7,320 claimants to 7,495. This is mainly due to coastal areas such Great Yarmouth and North Norfolk, showing an increase in seasonal workers claiming jobseekers allowance.
“Norwich, Breckland and King’s Lynn& West Norfolk all saw a reduction in claimants, whilst Broadland’s claimant count remained static. Great Yarmouth saw the largest rise from 2,585 claimants to 2,785.
“The latest data also confirms that the overall labour market continues to face a number of key challenges. While it picked up slightly, pay growth continues to lag behind price growth, which is stifling consumer spending, a key driver of UK economic growth.
“Significantly, the rise in the number of vacancies is a further indication of the persisting skills shortage faced by business, which undermines the UK’s growth prospects.
“With UK economic conditions likely to become more sluggish over the near term, it is vital that more is done to support firms looking to recruit and grow their business, including tackling the high up-front taxes and costs of doing business in the UK.”
