The East Midlands' unemployment rate has stayed at 2.7 per cent – the second-lowest in the country according to latest statistics.
But concerns are growing about the ability of businesses to fill key jobs.
Latest ONS figures for February to April suggest the region’s jobless rate was 1.1 per cent below the national average, with only Northern Ireland – at 2.6 per cent – lower.
The latest data follows confirmation the UK’s GDP shrunk by 0.3 per in April, raising the likelihood the country is heading for a recession.
East Midlands Chamber chief executive Scott Knowles said: “While on the face of it a low unemployment rate is a positive for the region’s labour force, this trend shows there is a major constrain on businesses when it comes to finding the staff they need to fill key jobs.
“The ONS figures reflect what we are finding in the East Midlands, where two-thirds of businesses attempted to recruit new employees in the second quarter of the year but 82 per cent of these struggled to find people, according to our latest quarterly economic survey.
“Four in 10 businesses told us they are now at full capacity, which strongly suggests they need staff to meet high demand.
“From our conversations with members, industries such as manufacturing – which are important drivers of economic output – are struggling the most due to early retirement among workers and a lack of skilled workers to replace them.
“When combined with inflationary pressures that are now hitting cashflow and investment intentions, this perhaps explains why GDP has now dropped as ultimately businesses are constricted in their ability to make the productivity gains that will drive the economic recovery.
“We need to find ways of bringing people back into our labour market. Flexible working practices, rapid retraining opportunities and a focus on workplace health can support many economically inactive people to return to the workplace.
“But for some roles where there is clear evidence of a national skills shortage, firms need access to people at all skill levels from outside the UK. As well as issuing temporary and seasonal visas, the Government needs to urgently review the shortage occupation list.”
Julie Pritchard, the Department for Work and Pensions’ partnership manager for Leicester and Northants, identified some of the employers looking for workers right now.
She said: “With summer fast approaching and a record level of vacancies, employers are turning to their local jobcentre for expert help matching jobseekers with their seasonal and permanent vacancies.
“Right now, it’s our top priority to work with employers and jobseeker to match the right job with the right person.”
She said Kinch Bus in Loughborough, for instance, needed 30 drivers.
