Reacting to the latest labour market data from the ONS published this morning, Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said: 

“The latest data paints a gloomy picture for jobs, opportunities and growth. It reflects what businesses tell us – they are less confident about hiring staff due to sky-high employment costs and a tidal wave of new employment legislation coming down the track.   

“While there has been some easing of cost pressures – with average earnings including bonuses slowing to 4.7% in the three months to October – labour costs remain a challenge.  Nearly three quarters (72%) of businesses in our latest survey said labour costs are the biggest cost pressure they are facing.   

“There is a limit to how much additional cost firms can absorb without an impact on investment and growth. The further increase in unemployment, hitting 5.1% in October, is also a clear sign of the sluggish economy.  

“We need a laser like focus on stimulating growth and boosting investment, trade, innovation and skills. The Government must work in partnership with business to make 2026 a year of delivery.”