Unemployment bucks national trend and rises for the first time this year

UNEMPLOYMENT in the West Midlands has bucked the national trend and risen for the first time this year.

Latest figures from the Office for National Statistics show unemployment in the region rose by 2,000 during the December 2013 to February 2014 quarter to 224,000.

The region’s unemployment rate is now 8.2%, a rise of 0.1% on the September to November 2013 quarter and well above the national average of 6.9%.

Nationally, the figure dropped by 77,000 to 2.24m, a drop of 0.3%. The largest decline was in London and the South West, which combined accounted for a 73,000 reduction on the figures.

The West Midlands was one of four regions to see an increase in its unemployment figures; the others were East Midlands, Yorkshire and The Humber and Scotland.

However, the situation is way better than this time last year when the number of people unemployed in the region stood at 252,000 – a rate of 9.1%.

Nevertheless, West Midlands business leaders have expressed concern at the latest increase.

Tim Pile, president of Birmingham Chamber of Commerce Group said: “This is disappointing news when previous figures have shown a downward trend.  The Midlands remains third only to the North East and the Humber in the unemployment league.

“The West Midlands has been disproportionately affected by unemployment during the recession but we have begun to see a return to stronger regional growth, with members telling us they will be taking on more staff.  Although what is hindering companies is the high skills deficit.”

The chamber said it was working to overcome this by actively working on a skills campaign which would forge stronger links between business and schools.

“Through working together with all the local further education colleges, the chamber has formed a Further Education Consortium to ensure that students are engaged at a younger age,” added Pile.

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