Rising unemployment means next week’s Budget should place the emphasis firmly on helping SMEs recruit new employees, according to Hays.

Latest figures from the Office for National Statistic reveal UK unemployment increased by 27,000 in the three months to the end of January to 2.53m, taking the unemployment rate to 8%.

A Hays spokesperson told Recruiter: “The latest statistics show rising unemployment until the end of January. In the past two months the situation has continued to be challenging but confidence from our candidates and clients is steadily improving.

“In the private sector, employers are on the whole much quicker to replace roles, but we need to see more job creation. The government has taken tough decisions on public spending and we hope that the Budget next week is truly a plan for growth – a healthy economy will fuel a healthy jobs market.

“We hope that the chancellor will put in place real incentives to encourage SMEs to invest in their businesses, increase workforce flexibility to make it easier for businesses to hire new employees and tackle the problem of NEETs (Not in Education, Employment or Training), so businesses have access to the skills they need.”

Samantha O’Byrne, head of resourcing at Grant Thornton UK, told Recruiter: “Threats in the shape of rising inflation and interest rates have created a tough trading climate for businesses and many have reined in their expansion plans. It is crucial the government restores confidence in the economy by creating an environment where jobs can be generated.

“Businesses need to be incentivised to create new jobs and it should be made easier for SME owners to take on new people. Initiatives such as young mentoring schemes or apprenticeships should also be encouraged and incentivised.”

Tony Roy, EMEA president for jobsite CareerBuilder, says: “Employers are guarded, but they are hiring. We are seeing companies hire in areas like healthcare, IT, engineering, sales and customer service. There’s a continued emphasis on positions that fuel top-line growth and drive innovation to create new revenue streams.

“Competition remains tough. Nearly one-third of employers we surveyed reported that, on average, they spend one minute or less reviewing a CV.”

Recruitment & Employment Confederation (REC) chief executive Kevin Green, adds: “The onus is now on the chancellor to announce measures in the Budget next Wednesday which will stimulate the economy and generate job creation. Today’s figures highlight the urgent need for the chancellor to deliver a meaningful Budget for jobs.”