Business leaders dismayed at latest unemployment rise
UNEMPLOYMENT in the West Midlands rose by 27,000 (1.1%) during the three months period November 2010 to January 2011 when compared with the previous quarter, latest figures show.
There are now 265,000 people unemployed in the region, equal to 9.9% of the working age population. The rate is the second highest in the UK, beaten only by the North East (10.2%).
Across the UK as a whole, 2.53m people are now unemployed, a rise of 27,000 (0.1%) on the period August to October 2010 and equal to a rate of 8%. The figures are the highest since November 1994.
Business leaders in the West Midlands said today they were “dismayed” by the figures released by the Office of National Statistics.
Christine Braddock, president of Birmingham Chamber of Commerce, said: “Although we are not surprised by the latest figures, they are extremely worrying.
In addition to on-going public sector job losses, the private sector is facing high levels of inflation plus last quarter’s shock contraction in the economy and high costs in raw materials.”
She said the private sector was also bracing itself for a large raft of employment legislation over the course of this Parliament which may not ease the situation.
Despite the pain it was likely to cause, she said the chamber remained broadly in favour of the Government’s cuts agenda as it would shrink the size of the structural deficit and help to deliver long-term sustainable growth.
“The chamber also welcomes the Government’s commitment to HS2, which will add thousands of jobs to the economy of Birmingham and the surrounding areas,” added Ms Braddock.
Mike Ashton, spokesman for the West Midlands Chambers of Commerce, said: “These figures are disheartening but the private sector can create the growth and jobs needed for the region.
“However, if it is to do this we need a halt to cumbersome red tape which hinders job creation and is expected to cost the West Midland’s businesses £1.74bn over the next four years. We also urge the Monetary Policy Committee to hold interest rates at their current level, which is helping boost the manufacturing sector in particular.”
