A leading business figure in Coventry and Warwickshire says uncertainty and rising costs have played a big part in unemployment rising.

Corin Crane, the chief executive of Coventry and Warwickshire Chamber of Commerce, is speaking to firms across the city and the whole county regularly.

He noted the national rise in unemployment reflected their views.

Crane said: "Through our Local Business Forum network, I've been talking to companies right across the region over recent months, and it is clear that the uncertainty created by international events has started to take its toll.

He added, in addition to other challenges, businesses had been impacted by rising business costs, particularly employment expenses, which, Crane said, "will have undoubtedly played its own part in this small rise in unemployment."

Crane continued: "That said, our economy has remained incredibly robust in the face of a whole host of shocks in the past few years, and there is no doubt that we are still blessed with an incredibly diverse business base across this region, with huge potential for the future.

"I would encourage every business to tap into the help on offer from the Chamber – whether that is with international trade or growing their market closer to home – in order to help them continue to grow.

"Not only that, we've seen interest rates come down recently and the Government has secured deals with the US and India, which will hopefully start to finally signal a period of stability."

Deputy Director Public Policy at the British Chambers of Commerce, Jane Gratton, added: "This data suggests some loosening in the jobs market with vacancies staying below pre-pandemic levels and unemployment nudging up, but wage growth, including bonuses, remains strong.  

"Although the pace of salary increases has slowed, they are still significantly above inflation. The rising cost of employment is a major challenge for employers.

"Our research has been clear that business sentiment has dropped due to the National Insurance (NI) increase and other changes to employment policy.

"The situation is likely to get worse for employers in the months ahead. 

"Although vacancies are now more than half a million below their pandemic peak, firms tell us recruitment remains a huge challenge. 

"They are still struggling to find people with the skills they need, which is continuing to drive wage growth and feed into inflation.

"In some cases, access to global talent remains the only solution to address urgent skills shortages, when firms have tried all they can to recruit and train people from the local labour market – and that option has become even more expensive.

"Business and government both want to fill job vacancies with UK talent and to train and upskill our workforce. To achieve this, government must double-down on plans to boost technical and vocational skills and help more people back into work. 

"That means easing the cost pressures on business to give them more freedom to invest in their workforce.  

"The £5bn plus cost associated with changes to employment rights also looms large in the background. While government is consulting business, the legislation as it stands threatens to add even more to their employment bills."