January 2023 Journal Column
Date published:
Latest column for the Journal
We have seen from the latest employment statistics for the North East, a loosening of regional labour market with a slight increase in unemployment.
We know from our most recent quarterly economic survey, that staff costs are one of employers’ main concerns going into 2023. If unemployment rates and financial pressures continue to worsen, businesses may also need more support in maintaining their current workforce.
As businesses are facing a tough economic climate, at the Chamber we have worked with industry experts to gather knowledge, practical advice and tools for businesses on how to weather the challenging economic headwinds, including easy-to-use online resources, money myth-busting and guides on accessing business grants, all in one place.
Nearly seven in ten UK employers believe staff performance is negatively affected when employees are under financial pressure. We have included advice on supporting carers in the workplace as well as how to signpost employees to financial advice and ways to tackle in-work poverty.
The challenge for businesses is to find a path that best serves customers, colleagues, communities, and other stakeholders in the present, while also ensuring a long-term sustainable future for the organisation. We have included advice on business finance covering retaining staff and recruitment, accessing grants and managing energy costs.
The government has also announced its energy bill discount scheme for businesses, which will provide very welcome extra support for manufacturing firms, but there are other areas which are not supported to the same extent, such as hospitality and retail, education, housing and health.
Energy costs are still a key concern for businesses, in our latest quarterly economic survey around 90% of businesses said that inflation and energy prices remained the top two concerns. What we now need is government to support business initiatives to drive down energy prices and become more energy efficient, as well as investing in energy production in the North East.
We have also recently seen the collapse of Britishvolt, which is extremely disappointing news for the region. The North East remains a fantastic place to invest in the creation and growth of businesses, and the new devolution deal for the region has a strong focus on net zero and energy innovation. We must learn the lessons of the Britishvolt experience and work together as a region to welcome future opportunities that produce quality jobs, and ensure they are brought to fruition in the North East.