The region’s unemployment level has fallen to 4.7% but is still too high, East Midlands Chamber has said as it urged the Chancellor to ensure the Budget on 28th October brings down costs for employers and prioritises skills investment.
The Chamber’s recently published 2026 Budget submission calls for the Chancellor to prioritise five points, which include reducing the cost of employing and addressing skills shortages.
The latest estimated unemployment figure from the Office for National Statistics for over 16s in the East Midlands is now the same level as the UK overall and covers June to August 2026.
It is the lowest unemployment level in the East Midlands since the same period in 2025 when the figure was 4.5%.
East Midlands Chamber Chief Executive Scott Knowles said: “Falling unemployment is exactly what we want to see in the East Midlands but while the direction of travel is encouraging, the unemployment level in the region remains too high. Employers continue to be forced to grapple with inhibitive costs that stall investment and growth, while the skills gap persists and needs addressing.
“The upcoming Autumn Budget on 28th October is an opportunity the Chancellor must seize to bring down the sky-high costs imposed on employers as we have called for among the Five Asks in our Budget submission for 2026.
“For the Chancellor to overlook the call we have made on behalf of our members to reduce costs associated with employment, or the other asks presented in our Budget submission, would hamper growth. That must not happen.
“The Five Asks in our 2026 Autumn Budget submission call for the skills gap to be addressed alongside cost reduction for employers, as our research has continually shown lack of skills that match the requirements of an employer to be a barrier to growth. We want to see areas like employer-led skills provision, technical and vocational education and development of leaders and managers prioritised among measures announced in the Budget.
“With only days to go until the 2026 Autumn Budget, the immense pressure employers have had to contend with for a prolonged period needs to be addressed in announcements that day. I would urge the Chancellor to action our call on reducing employment costs and all the points set out in our Budget submission to incentivise investment and unlock growth in the East Midlands.”
View East Midlands Chamber’s Five Asks for the 2026 Budget here.
View East Midlands Chamber’s Framework for Growth here
