The Forum of Private Business, the business lobby group, has urged the Government to take action against redundancy.
Unemployment increased by 137,000 over the three months to October 2008 and at 1.86 million these are the highest figures for almost ten years. The FBP says it has received a significant increase in calls asking advice about the alarming increase in redundancy rates.
FPB chief executive Phil Orford said: “[The Government] require a long-term plan to address all of the difficulties small businesses face in relation to employment, including a significant reduction in employment regulations.
“Cutting employers’ National insurance contributions, for example, would amount to the Government incentivising employers to retain their existing staff, thereby tackling unemployment head-on.”
The FPB would also like the government to tackle the administrative burden of existing regulations and launched a campaign last year.