Corin Crane, chief executive of Coventry and Warwickshire Chamber of Commerce, said he hoped the New Year would see confidence starting to return.
“Labour costs are proving to be a huge pressure point for businesses across Coventry and Warwickshire and, with that being reflected across the country, it comes as no surprise that unemployment has ticked up again.
“There is a particular concern around young people and it’s right that the Government channels much of its efforts in that direction.
“We welcome the focus on supporting the unemployed back into work and especially the drive to promote apprenticeships and offer free places for under 24s to local SMEs because it’s vitally important for our future economy that we bring through the next generation of workforce into the world of work.
“That said, we also need to see a wider drive to get the economy growing again by giving businesses the confidence to invest because that will lead to job creation.
“There were lots of businesses putting plans on hold ahead of the Budget and I am cautiously optimistic that they might start to move forward with those in the New Year.”
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said: “The latest data paints a gloomy picture for jobs, opportunities and growth. It reflects what businesses tell us – they are less confident about hiring staff due to sky-high employment costs and a tidal wave of new employment legislation coming down the track.
“While there has been some easing of cost pressures - with average earnings including bonuses slowing to 4.7 per cent in the three months to October - labour costs remain a challenge. Nearly three quarters (72 per cent) of businesses in our latest survey said labour costs are the biggest cost pressure they are facing.
“There is a limit to how much additional cost firms can absorb without an impact on investment and growth. The further increase in unemployment, hitting 5.1 per cent in October, is also a clear sign of the sluggish economy.
“We need a laser like focus on stimulating growth and boosting investment, trade, innovation and skills. The Government must work in partnership with business to make 2026 a year of delivery.”
