Government Must Do More to Help Firms Create Jobs, says BCC

18th July 2013

In the three months to May 2013, unemployment fell by 57,000, and employment rose by 16,000 Long-term joblessness is up, with those unemployed for more than one year and two years rising Youth unemployment fell by 20,000, but remains over 950,000 The claimant count fell by 21,200 between May and June 2013 Commenting on the labour market figures, published today by the ONS, David Kern, Chief Economist at the British Chambers of Commerce (BCC), said: -With employment rising and unemployment falling, the labour market remains an area of strength for the UK economy.

There are some areas of concern, however. Long-term unemployment is up, and youth unemployment, while edging down, is still too high. But at a time when the government's austerity plan remains in force and the public sector is shrinking, it is reassuring that the private sector is willing and able to create jobs. -The government and the Bank of England can do more to help businesses continue creating jobs. The positive measures announced in the Spending Review, such as providing more support for exporters and infrastructure projects, should be implemented as soon as possible, and further efforts are needed to increase the flow of credit to viable businesses.