Labour has ‘crushed jobs and livelihoods’ as unemployment hits its highest level

According to the Office for National Statistics (ONS) unemployment has hit its highest level in four years.

Unemployment unexpectedly soared to 4.8% in the three months to August, up from 4.7%, this is its highest level since March to January 2021 during the Covid pandemic.

Shadow Work and Pensions Secretary Helen Whately said, “The only thing growing under Labour is the unemployment queue and the national debt.

“The Conservatives left office with unemployment at near record lows and the fastest-growing economy in the G7. In just over a year, Labour has killed growth and crushed jobs and livelihoods, with families paying the price.

“Keir Starmer has no backbone and is too weak to stand up to his own backbenchers to cut welfare and get people back into work. Now families face another Rachel Reeves’ tax raid, which will pile on pressure on workers and punish the businesses that create jobs.”

Unite general secretary Sharon Graham blamed

The rising unemployment has been blamed on the “chronically low investment and a failed net zero plan,” Unite general secretary Sharon Graham said.

She said, “The UK economy needs a co-ordinated industrial strategy backed by serious investment. To do anything else risks workers in Britain being thrown on the scrap heap and rising unemployment.

“Other economies like Germany are investing heavily in their industries and the UK is lagging way behind.

“Chronically low investment and a failed net zero plan is delivering a jobless transition.”

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce said, “Unemployment continues to edge up while job vacancies continue to fall. These are clear signs that employers are holding back on recruitment under the burden of soaring employment costs.

“We would normally expect a loosening of the labour market to lead to an easing in average earnings. But, while the rate of growth has slowed, they remain above inflation, adding to pressure on businesses’ balance sheets.

“Our latest survey shows that labour costs remain the biggest cost pressure for SMEs, cited by 72% of firms. Firms tell us the increase in employer NICs is the biggest driver of this. As a result, we are unlikely to see any further cuts in Bank of England interest rate this year.

“Firms are increasingly fearful of any further increase in costs in the Budget, which they simply won’t be able to absorb. Already, firms are bracing themselves for an additional £5bn cost associated with the Employment Rights Bill, which will threaten investment plans, increase risk and impact on opportunities for people in the labour market.

“That’s why we are clear, there must be no more taxes on business in November’s Budget. The Chancellor must also use her statement to invest in workforce health and skills to help more people thrive in work.”