Call to cut red tape as unemployment rises
The government is being called on to cut red tape and help the private sector to create more jobs after unemployment levels rose by 11,000 in the East Midlands.
There were 186,000 unemployed in the region during May to July 2011, according to the Office for National Statistics, meaning 8 per cent of the working population is now out of a job in the East Midlands.
This was above the UK unemployment rate of 7.9 per cent with 2.51 million jobless nationwide. The North East was again the worst faring region with 10.7 per cent out of work while only 5.8 per cent were unemployed in the South East.
The total number of those claiming the Jobseekers' Allowance was 106,800 in the East Midlands.
David Kern, chief economist at the British Chambers of Commerce, said: "These figures were disappointing, but not surprising in the face of the worsening global economic situation, and the government's tough austerity plan.
"These figures reinforce the need for the government to help the private sector to create more jobs, and those lost in the public sector. Reducing red tape, and creating a skills system that provides the right candidates for firms, will aid businesses in increasing their workforce.
"However it is crucial that the government perseveres with the deficit-cutting plan, and ensure the UK does not lose its AAA rating. However, there may be a need to make changes within the overall plan to give businesses a greater chance to create jobs and drive recovery."
George Cowcher, chief executive of the Derbyshire and Nottinghamshire Chamber of Commerce, added: "The local employment figures are once again disappointing and only serve to heighten concerns about the current pace of economic growth, which is preventing the recovery from building up any sort of momentum.
"Nationally, statistics show a worrying increase in youth unemployment, with the quarterly rise occurring mainly in those between the ages of 18 to 24.
"Feedback from chamber members would suggest that this is a big issue locally and one which can only be addressed through the creation of an education and training system which equips the workforce with the skills and qualifications required to meet local business needs. We also need to ensure that the system instils the right attitudes and work ethic needed to get young jobseekers ready for the workplace.
"These figures also reinforce the need for the government to help the private sector to create more jobs to offset those lost in the public sector, by reducing red tape to make it easier and more cost-effective for companies to employ more people."
