Unemployment declines to lowest level since 2008

UNEMPLOYMENT in the West Midlands has shown another sharp decline, according to latest figures.

The region’s jobless total declined 0.3% during the May to July quarter to 194,000 – a drop of 9,000 compared to the February to April quarter.

The unemployment rate in the West Midlands now stands at 7.1%, which is well ahead of regions such as the North East (9.9%) and Yorkshire & The Humber (7.3%) but still above the UK average of 6.2%.

Nevertheless, looking at the long-term trend, the West Midlands has seen the highest fall in the jobless rate across the UK during the last 12 months. Figures from the Office for National Statistics show the region’s jobless total declined 73,000 compared with where it stood a year ago; a decline of 2.6% – well above the UK average of 1.5%.

Nationally, there were 2.02m unemployed in the May to July quarter, a decline of 146,000 (0.4%) on February to April – the lowest it has been since 2008.

Nationally, the jobless figure has declined by 468,000 (1.5%) during the past 12 months – the largest annual fall in unemployment since 1988.

Business leaders in the West Midlands today welcomed the fall and the positive message it sent out.

The Coventry and Warwickshire Chamber of Commerce said it was good news for the individuals, for business and the wider economy but they continue to warn against complacency.

Louise Bennett, chief executive at the Chamber, said: “For every person that is now in work that was previously unemployed this is great news and it’s important not to forget that behind every set of statistics there are individual lives that are being changed.

“It shows that businesses across our patch are continuing to grow and take on new people and that is positive news for them and the wider economy.”

Tim Pile, president of Birmingham Chamber of Commerce, said: “This is a welcome trend which we hope will continue into 2015. It is the lowest figure for the region since Q4 2008.

“Increased optimism is giving business the confidence to take on staff in our latest economic survey for Q2 confirmed this with 84% of manufacturers believing their turnover would increase in the next 12 months.”

It is ironic that the figures should be released today – the same day Birmingham City Council has suggested it could have to cut a further 6,000 jobs to try and balance its books.

It also comes against the background of 5,500 impending job losses following the collapse of mobile phones retailer Phones 4u.

Better news has come from Black Country manufacturer, Wellman, which has been saved from closure after a management buy-out.

The Oldbury firm, which can trace its origins back to 1840, lapsed into administration last month. The MBO has saved the jobs of 52 workers and the new company will operate under the name of Robey-Wellman Boilers and Furnaces Ltd.

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