Business leaders "reeling" at near 10% West Midlands unemployment

UNEMPLOYMENT in the West Midlands has risen to one of its highest levels with almost 10% of the region’s working age population now without a job.

Latest figures show 9.9% (264,000) of the working age population is unemployment – higher than the height of the recession.

The region’s manufacturing industry is thought to have seen a severe decline, although the service sector also took a battering.

The Birmingham Chamber of Commerce has predicted that with further public sector cuts, increasing VAT and inflation then further job losses are inevitable.

The figures, for the period September to November 2010, are 1% (26,000) up on the previous quarter between August and October.

The region is now officially the worst in the UK in terms of unemployment. The national average of 7.9% (2.5m) is virtually unchanged on the previous quarter, up just 0.2% (14,000).

The increase in the number of jobless people is giving business leaders in the region cause for concern. Since June last year, unemployment has risen by 48,000, by far the biggest rise anywhere.

Putting the figures in further context, they are even worse than the corresponding period in 2009 – up 0.3% (6,000).

The Birmingham Chamber of Commerce said the figures had sent business leaders “reeling”.

Christine Braddock, President of Birmingham Chamber of Commerce, said that in the last month alone, the number of unemployed people in the West Midlands had increased by 14,000.

“These latest shocking figures are even more reason for the government to provide businesses with the freedom to create jobs and wealth. More employment and more start ups are needed,” she said.

“Public sector cuts, coupled with this month’s VAT increase and more legislation and red tape, will have an even further negative effect on the business community.

“The government must tackle these obstacles, which are damaging employment preventing many SMEs from getting ahead.”

The chamber said even though businesses had been predicting a rise, the increase had still taken many by surprise.

The chamber’s latest quarterly economic survey had shown that 17% of manufacturers had seen a decrease in their workforce in comparison to Q3, when the figure was just 9%.

Only 13% of manufacturers saw an increase in their workforce over the last three months of last year, compared to 27% in Q3.