Government 'must support' labour market

Private sector job creation needs to be boosted by government action, the British Chambers of Commerce (BCC) has argued.

The organisation was commenting following the publication of Office for National Statistics employment data, which showed an increase in the number of people in work.

Chief economist at the BCC David Kern welcomed the findings because they were better than expected, but argued that more should be done.

He suggested that there is a "significant regulatory burden" affecting firms and reducing this would allow small and medium-sized enterprises to take on more staff.

The full impact of tough measures implemented through the recent emergency Budget will not be seen until next year, according to Mr Kern, with UK unemployment expected to peak in late 2011.

Earlier this month, Mike Petrook of the Chartered Management Institute observed that a skills shortage is currently facing the country, with businesses urged to be flexible in their working practices so they do not shut themselves off from top talent.