BCC: Positive labour market figures still mask worrying trends - Lincolnshire Chamber of Commerce and Industry, UK

Commenting on the labour market figures published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said:

“Overall, these figures were positive and better-than-expected. Employment is higher while unemployment and inactivity are both lower. However, the number of part-time workers rose to its highest level since records began, and the number of people unemployed for more than 12 months increased to a level not seen since 1997.

“While recent labour market trends are welcome, it is important to bear in mind that we have not yet seen the negative impact on jobs that will result from the tough measures announced in the Budget.  On the basis of these figures, we reiterate the BCC’s forecast that unemployment is likely to peak at around 2.65m in the second half of 2011.

“The Government must do everything in its power to allow the private sector to create jobs and to offset the unavoidable cut-backs in the public sector. Reducing the significant regulatory burden still facing small and medium-sized businesses must be a key element of an economic strategy focused on job creation.”