Corin Crane, Chief Executive of the Coventry and Warwickshire Chamber of Commerce, said: “When you speak to companies across the patch, as we do all the time, they are facing a variety of pressures that make doing business more difficult than it should be. 

“Running a company – whether you are a start-up or a bigger business that employs hundreds of people – is challenging enough.  

“But it is even tougher out there for many of our members and the labour market figures reflect that as firms are still struggling to attract people with the right skills to fill their available roles and, therefore, it is seeing wage inflation remain high. 

“Further to that, we are just starting to see the unemployment rate creep up – not by much – but that is reflective of the economy beginning to weaken in the wake of consecutive interest rate rises. 

“There is a lot to grapple with for business owners and that is why we would always encourage them to talk to the Chamber, whether they need support with growth plans or whether they are in survival mode.” 

Jane Gratton, Deputy Director Public Policy at the British Chambers of Commerce, said: “Today’s figures show pay for individuals may be improving, but the current situation offers little comfort to businesses up and down the country. Firms are still struggling to contain wage inflation arising from candidates’ expectations and workforce pay settlements. 

“At the same time, recruitment issues remain a top concern for business. The latest research by the BCC shows record numbers of organisations reporting hiring difficulties – particularly in the hospitality, retail and manufacturing sectors. 

“The fall in the overall number of job vacancies reflects a weakening economic outlook and BCC’s Quarterly Economic Forecast published last week predicts further growth in unemployment during the next three years. 

“Underneath these headline figures the skills crisis continues and the labour market picture will remain challenging. Our message to policymakers is clear, invest in skills now for a more prosperous economy.”