Big rise in region’s unemployment gives business cause for concern

BUSINESS leaders in the West Midlands have again expressed their concern following a dramatic rise in the region’s unemployment figures.

Data released from the Office for National Statistics shows that in the April to June quarter unemployment in the region reached 272,000 – an increase of 18,000 (0.7%) on the January to March quarter. The rate of unemployment in the West Midlands is now 9.9% and way above the national average.

Nationally, there was a 4,000 fall in the jobless total but the drop barely registered on the 2.51m total. Nevertheless, the national rate of unemployment stands at 7.8%.

With the new governor of the Bank of England, Mark Carney, announcing last week that interest rates will be linked to a fall in unemployment, the figures in the West Midlands are a further cause for concern.

Steve Brittan, president of Birmingham Chamber of Commerce Group said: “The Midlands remains second only to the North East in the unemployment league and the region has much higher unemployment figures than nationally.  
 
“These figures are a paradox as firms tell us they are still facing recruitment difficulties but this could be explained by the high skills deficit.
 
“The chamber is launching a skills campaign later this year which will forge stronger links between business and schools and a detailed action plan should help us to develop the skills that are so needed in the region.”
 
Mike Ashton, spokesman for the West Midlands Chambers of Commerce, said: “These figures will be particularly worrying for youngsters getting their A level results tomorrow .”

However, one critical factor is sometimes overlooked in interpreting the figures is that labour market statistics are usually out of step with current economic data and recent surveys have shown that the economy in the West Midlands is improving.