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Employers to remain cautious

The region’s business community has been warned that the North East job market is still extremely fragile despite the biggest fall in unemployment benefit claims since 1997.

New figures published yesterday revealed there were 32,300 fewer people receiving jobseeker’s allowance in the UK in February than in the previous month – making it the sharpest drop for over a decade.

The Office of National Statistics figures also revealed that unemployment in Britain had dropped to 7.8% in the three months to January, raising hopes that the job market had turned the corner.

However, the CBI warned North East businesses that the positive figures did not tell the full story and that the market remains fragile.

Sarah Green, regional director, CBI North East, said: “Although the fall in unemployment is welcome, the figures also show that the number of people actually in work continued to fall which is a concern.

“The number or people in full-time employment dropped by 54,000 in the three months to January, while the number of part-time jobs was unchanged. Unlike previous months, an increase in part-time work did not help to offset falls in full-time employment.

“Clearly, the labour market is still very fragile. Growth is not yet sufficient to generate net new job creation.”

Meanwhile manufacturing industry body EEF also warned that employers in the sector remain cautious about the road ahead.

Alan Hall, regional director of the EEF, said: “Manufacturing in the region has begun the road to recovery, the position was fragile and fairly anaemic but there is a mood of optimism among factories in the region.

“That said, I’m not aware of any of out key members at EEF that have any major recruitment plans with companies that are operating within the region.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .