Economy
Unemployment falls but recruitment struggles continue
Firms are finding their feet again
The Chamber has welcomed a fall in unemployment but say firms are struggling to recruit to help them recover from the coronavirus crisis. Unemployment fell to 4.7 per cent in the month to June while there were 953,000 job vacancies nationally in the three months to July. Tom Mongan, president of the Coventry and Warwickshire Chamber of Commerce, said the figures reflect what the Chamber is hearing from firms locally. He said: “Of course, falling unemployment is very welcome news and the labour market is performing better than many thought it might when we were at the height of the crisis.
Steve Harcourt with Louise Bennett
“However, when I go out and talk to businesses in the region, I am hearing time and again that they are struggling to recruit. Without the right level of staff, it becomes increasingly difficult for them to start growing again and that will stunt wider economic growth. “It’s vitally important, therefore, that the government sets out a plan for tackling this issue so we can make sure we have the right skills for the roles that the economy is demanding. “That plan should include a mix of training opportunities for people to forge new careers and greater flexibility when it comes to immigration so that businesses can bring in the people with the skills they need to help them grow.” British Chambers of Commerce head of economics, Suren Thiru, said: “The latest figures confirm that the UK jobs market is recovering
Coventry and Warwickshire businesses are finding their feet amongst COVID-19 and postBrexit restrictions, while the manufacturing industry has turned its fortunes around, according to a new survey. The vaccine rollout and relaxation of restrictions has ensured that optimism amongst Coventry and Warwickshire businesses has continued to grow, marking twelve months of increased positivity, with the manufacturing sector enjoying a substantial increase in confidence. The latest Quarterly Economic Survey (QES) conducted by the Coventry and Warwickshire Chamber of Commerce suggests that COVID-19 vaccination uptake has increased consumer confidence and encouraged people to go out and spend on social activities and indoor hospitality after months of pent-up demand. The survey, which is delivered in partnership with Prime Accountants Group, is analysed by the Economy & Skills Group at Warwickshire County Council. Its analysis uses a similar score to the national Markits Purchasing Managers Index (PMI), where 50 is the
balance and anything above means the majority feel positive and anything below means the reverse. The Q2 2021 report indicates a sustained increase in confidence for four consecutive surveys since Q2 2020, when business confidence plummeted in response to the first national lockdown. Confidence in the region’s manufacturing sector was reported as being above the national average PMI at 65.4, marking a 10.5-point increase on the previous quarter as firms made the most of reduced restrictions and increased employment, as well as newfound clarity over post-Brexit trade. Employment in the manufacturing sector contributed to this trend, enjoying a transition from slightly negative to mostly positive as its score rose from 43.4 in Q1 to 68.6 in Q2 2021. The survey cited the revival of the labour market and the loosening of restrictions as reasons for this uptick. Sean Rose, policy officer of the Coventry and Warwickshire Chamber of Commerce, said: “It is extremely promising to see an increase in business confidence not just in the services sector and the high street, but in the manufacturing industry too.”
strongly as the boost to demand from the easing of restrictions helped drive higher payroll employment in July. “Record vacancies confirm ongoing recruitment difficulties. Although the changes to self-isolation rules will help, with many firms facing a more deep-rooted squeeze on labour supply from the impact of COVID and Brexit, staff shortages may persistently weigh on economic activity.”
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"The Q2 2021 report indicates a sustained increase in confidence for four consecutive surveys since Q2 2020, when business confidence plummeted in response to the first national lockdown."
www.cw-chamber.co.uk
