West Midlands unemployment increases by a further 6,000

UNEMPLOYMENT in the West Midlands rose by 6,000 during the December to February quarter, mirroring the situation in the UK as a whole.

Data from the Office for National Statistics shows there are now 256,000 people out of work in the region, compared with the September to November 2012 period.

The rate of unemployment in the region stands at 9.1%, up 0.2% on the prior three-month period. The percentage rise is the same as for the UK as a whole. Nationally, the ONS figures show there are 2.56m unemployed, an increase of 70,000 on the September to November 2012 period. The rate of unemployment for the UK stands at 7.9% on the quarter.

Birmingham Chamber of Commerce Group said the rise in the region’s unemployment levels underlined the urgent need for action from the government to ease regulations imposed on business when they take on staff.

Steve Brittan, president of the Birmingham chamber, said: “It is unacceptable that our region is so high in the jobless league table and it underlines that SMEs are still finding it difficult to take on new employees.

“One of the main reasons is the burden of red tape, especially those regulations which surround employment. Some of the laws on this issue need to be eased, especially in making it easier for companies to shed staff should fortunes take a turn for the worst.”

He said a £2,000 cut in employers’ National Insurance contribution may help to soften the blow for firms but against this was the recent rise in the national minimum wage.

“High unemployment in the West Midlands is ironic when we are suffering a chronic skills gap. We must up our game in this area and re-train unemployed people into jobs that are urgently needed,” added Mr Brittan.

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