The unemployment rate fell to 4% between June and August, according to the latest figures from the Office for National Statistics.
The ONS said the rate of people considered “economically inactive” – defined as those aged between 16 to 64 years old not in work or looking for a job – edged lower to 21.8%.
The number of job vacancies also decreased, falling to 841,000 in the July to September period, while pay grew at 4.9%.
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:
“With vacancies continuing to fall and the pace of wage rises slowing, it would appear there are further signs of the labour market loosening.
“It’s good to see that levels of unemployment and economic inactivity have fallen slightly. But our latest research shows three quarters of firms are still struggling to find staff with the skills that they need.
“Firms are worried the autumn budget might lead to a higher tax burden – particularly a potential increase in NICs – and that the Government’s new employment reforms could increase costs.
“There are two key issues the Chancellor must address to boost employment and help keep momentum in the economy. First, is to help the long-term sick back into work and, second is to plug the gaps in local training provision.
“We want a reduction in the employer and employee tax on workplace health services so more people can get tailored support more quickly. And we need longer-term funding for Local Skills Improvement Plans, to help more businesses provide more training for more people.”
More detail on the ONS data can be found here.
Join Somerset Chamber of Commerce to give your business a stronger voice both locally, regionally and nationally. Combined with local town chambers, we represent over 2,000 businesses across Somerset with a direct line to policy-makers at all levels.
