Unemployment in the West Midlands defies national trend

Business leaders have urged regional stakeholders to address labour market weaknesses after latest statistics showed unemployment rising in the West Midlands – against the national trend.

Figures from the Office for National Statistics show unemployment rose 0.3% in the November 2016 to January 2017 quarter to 160,000 – a rate of 5.6%. Employment levels also declined, down 0.4% (18,000) on the August to October 2016 period.

Nationally, there were 1.58m people unemployed – down 31,000 on the August to October quarter last year – giving a rate of 4.7%. The rate has not been lower since June to August 1975.

It is the second successive month that the region has seen both a slight rise in unemployment and a dip in employment.

Greater Birmingham Chambers of Commerce (GBCC) said the figures were a cause for concern despite the ONS claiming that the volatility is still linked to inaccurate estimates from last year.
 
Paul Faulkner, chief executive of the GBCC, said: “Today’s labour market statistics paint a mixed picture for the region as we see a second month of dipping employment rate combined with a slight rise in unemployment.
 
“Despite admittance from the ONS that this volatility is still linked to inaccurate estimates from last year, it is important that regional stakeholders take steps to address labour market weaknesses where they are identified.
 
“With business leaders looking ahead to the WMCA Mayoral Elections on May 4, this must be a key area of focus for the successful candidate.”
 
The chamber, in partnership with sister organisations in the Black Country and Coventry & Warwickshire, has produced a manifesto it wants the winning candidate to adopt.
 
“Alongside this, we will also be producing a toolkit for business leaders that will enable them to engage their employees in this defining moment for the region,” added Mr Faulkner.
 
He said that on a more positive note, the findings of the chamber’s latest Quarterly Business Report suggested a more stable labour market than the ONS figures would suggest.