Government chastised for not doing enough to tackle unemployment

THE Government is not acting quickly enough to tackle joblessness say West Midlands business leaders as the latest unemployment figures show a rise in the number of people without work.

A total of 243,000 people are now out of work in the region, after an increase of 9,000 in the past three months, which means an unemployment rate of 9.2%. This is 0.8% above the national average.

Michael Ward, president of Birmingham Chamber of Commerce Group (BCCG), argues we need action now to bring forward infrastructure projects.

He said: “HS2 is all well and good but too far away to create the employment we need now. Parliamentary procedures could delay and damage the project. Schemes like the A45/6 which will accommodate the Birmingham airport runway extension will provide more immediate jobs but the Government should be implementing initiatives which will encourage business to invest.”

John Rider, West Midlands chairman of the Institute of Directors, said the latest figures are a “big worry”.

“We should re-double our efforts to create the new jobs which are so desperately needed,” he said.

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “We speak to members regularly and the picture is not one of doom and gloom but one of uncertainty. With a bit more confidence and stability in the economy, many more companies would be looking to take on new staff.

“This is where the Government needs to inject confidence by paring back the red tape on employers to give them the freedom to take on more staff.”

Andy Youngman, area director for Lloyds TSB Commercial in Birmingham, said: “Today’s unemployment figures do of course reflect the fact that, faced with real economic uncertainty, many businesses and organisations are cutting back on staffing levels.”
 
But he thinks there is some positive news around.

“There’s an important trend that is taking place despite the current difficulties – a real growth in the number of start ups,” he said.

“Over the past two years, the number of start ups across the UK has grown by more than 20 per cent. These businesses are set up by people looking for an alternative to employment, or as a route out of unemployment, and either way this secures a job or creates a vacancy. If they go on to expand, they then create jobs for others.”