Unemployment falls but small business confidence subdued

The latest UK jobs numbers show employment up by 44,000 and unemployment broadly stable, down by 2,000. Wage growth has risen slightly - with average earnings, including bonuses, up by 2.0% compared to 1.9% in the previous period.

“The unemployment rate remains at a historically low level, but there are warning signs that the economy is not performing as well as many had hoped. Our members’ confidence remains comparatively low, with businesses looking to contain costs amid a challenging policy environment,"said Mike Cherry, FSB National Chairman.

Although employment appears to be holding steady, the latest Federation of Small Businesses (FSB)Small Business Index revealed small business confidence is at its lowest level since 2013. This suggests that while the labour market continues to be a sign of strength, the overall economic outlook is far from certain.

Mike Cherry continued: “Small businesses are dealing with a raft of new cost challenges, including the National Living Wage and pensions auto-enrolment deadlines. To meet these challenges employers are looking for ways to keep costs down. “Small firms will be looking for some reassurance that no new challenges are on the horizon. The Queen’s Speech is an opportunity for the Government to show they back small business and commit to a legislative programme that cuts the cost of doing business and boosts enterprise in all corners of the country.”