BUSINESS leaders yesterday called for “radical” tax incentives to boost job creation as 19,000 more people joined the unemployed in the North East.
The North East Chamber of Commerce (NECC) also urged ministers to support training and cut red tape, as Labour renewed its demands for a rethink by the Government.
Official figures showed a 19-year unemployment high with 142,000 people without a job in the region between June and August. The North East’s unemployment rate rose to 11.3%, the highest of any region.
Across the country, unemployment was up between 114,000 over the same period to 2.57m – the worst total since the autumn of 1994.
The Office for National Statistics also said youth unemployment around the country reached a record high of 991,000, while the numbers claiming Jobseeker’s Allowance increased for the seventh month in a row, to 1.6m.
NECC chief executive James Ramsbotham said: “While incredibly disappointing, these results do not come as a huge surprise with the impact of the global economic crisis, public sector cuts and the slowdown in economic growth seriously affecting the jobs market, particularly in the North East.
“Today’s figures reinforce the need for additional Government support to help the private sector create jobs by bringing forward more radical tax incentives for employment and training, cutting red tape and reducing the legal and administrative burdens hampering business growth.”
He was backed by Sarah Green, regional director of the CBI North East, who said: “Today’s unemployment numbers make grim reading, especially for our young people. The continuing rise in youth unemployment is a grave concern for us all.
