Region’s unemployment total rises slightly but impact of Brexit yet to be felt

UNEMPLOYMENT in the West Midlands has risen again – although not by as much as many were fearing.

With the current period (June to August) straddling the EU referendum there were concerns the Brexit shockwave may have seen unemployment in the region spiralling upwards.

However, the total for the West Midlands rose by just 3,000 in the quarter to 168,000. Statistically, the rate remains the same as the March to March quarter at 5.9%.

Nationally, the figure rose by 10,000 to 1.66m but again the rate remains the same as the March to May quarter, at 4.9%. The national rate has not been lower since the July to September quarter in 2005.

Part of the West Midlands’ better-than-expected showing is the increase in employment within the region, which at 1% was well above the national average of 0.1%.

Elliot Mason, policy and patronage adviser at Greater Birmingham Chambers of Commerce, said: “Today’s labour market figures provide yet another reason to feel positive about the West Midlands as we see that our employment rate rose by 1% between June and August. This sees us outperforming the other English regions.

“While our unemployment rate showed no movement, the fact that our inactivity rate falling by 1.1% didn’t result in an increase in unemployment could indicate that the region is performing more effectively at getting people into work.

“While these statistics are encouraging we must be cautious in our optimism. Our employment rate remains some way below the national average and our unemployment rate is still 1% higher than the average for the UK.”

He added that the region had to recognise that the impact of Brexit was unlikely to have translated into the labour market yet.

“Our most recent Quarterly Business Report highlights that business confidence and growth remains robust in the region and today’s labour market statistics suggest that we continue to move in the right direction. However, it is vital that we do not rest on our laurels,” he said.

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