Unemployment drops 13,000 as recovery continues

UNEMPLOYMENT in the West Midlands returned to its downward trend after showing a slight blip last month.

Latest figures from the Office for National Statistics show unemployment in the region declined by 13,000 during the January to March quarter – the largest fall in England.

The fall, equivalent to 0.5% of the jobless total, means there are 213,000 people now classed as unemployed in the region – a rate of 7.8%.

The picture is much healthier than this time last year when the jobless total was 40,000 – or 1.4% – higher.

The figures bear out the findings of recent surveys suggesting that the economy of the region continues to recover, with firms taking on more people to complete existing or newly-acquired orders.

Nationally, the unemployment total declined to 2.21m for the January to March period, a fall of 133,000. The national rate of unemployment is 6.8%. There are now 309,000 fewer people classed as unemployed than this time last year.

Business leaders in Greater Birmingham gave the figures a “cautious welcome”.

Birmingham Chamber of Commerce president Tim Pile said: “We give a cautious welcome to the drop in West Midlands and Birmingham figures.

“While the figures are still high, the chamber’s Quarterly Economic Survey is showing a rapid increase in business confidence. This will no doubt translate into firms increasing their workforces, particularly in manufacturing.

“This is an extremely welcome trend, particularly given that these are the lowest figures for at least three years and we underline again that Birmingham is open for business and can improve these figures further.”

He said feedback from chamber members suggested vacancies existed but the problem remained that often applicants lacked the required skills for the position.

“So, it’s still going to be a long fight to get employment figures back to acceptable levels,” he added.  

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber, said the figures were encouraging and the situation highlighted not only that the economy was slowly recovering but also just how fast the decline hit in 2008.
 
She said: “There is a clear pattern but the recovery is fragile and there has, for example, been talk of interest rate rises and wage inflation which could be a threat to the sustainability of the recovery.
 
“But there is no question that this is good news and should be celebrated – and built on. It has been a long tough road for businesses and there will still be some twists and turns, but we are undoubtedly heading in the right direction.”