Chamber Comment - Unemployment Rates at Lowest Levels Since 2008

Christian Spence, Research Manager at Greater Manchester Chamber of Commerce

Commenting on the labour market data released today (Wednesday 16 Juky) by the Office for National Statistics, Christian Spence, Head of Business Intelligence at Greater Manchester Chamber of Commerce, said: "Today's statistics continue to show that the economic recovery is having a strong and positive effect on the wider labour market.

"Headline rates of unemployment and claimants of Jobseeker's Allowance are now at levels last seen at the end of 2008 with the under-25’s claimant count the lowest for nearly a decade.

"The performance of the labour market means employers are likely to find recruitment more difficult as the year progresses and we expect the current annual pay increases of 0.7% excluding bonuses will rise as competition for skilled labour increases.

"Policy makers should redouble their efforts to focus solely on those people who are now furthest from the labour market and allow the wider economic recovery to enable those prepared for work to re-engage with the workforce naturally.

"We remain at risk of structural unemployment from disadvantaged parts of the population and all efforts should be targeted directly at those individuals to ensure that a large a number of people as possible can benefit fully from the economic recovery our region is experiencing."