Unemployment continues decline but at a low rate

UNEMPLOYMENT in the West Midlands has continued to decline – although at the slowest rate anywhere in the country.

Latest figures from the Office for National Statistics show 3,000 fewer people were jobless in the April to June quarter than compared with the three month period between January and March.

There are now 210,000 out of work in the region, a rate of 7.7% – down 0.1% on the previous quarter. However, the figures show a significant decrease on those this time last year when the jobless total was 61,000 higher and the regional unemployment rate was 9.9%.

Nevertheless, the 0.1% decline was the lowest in England and shared by Wales and Scotland. The only English region outside this was in the South West, where unemployment rose by 10,000 on last quarter, an increase in the unemployment rate of 0.4%.

Nationally, the unemployment total stood at 2.08m, a decline of 132,000. The 6.4% is now at its lowest since late 2008. Year-on-year the national fall is 437,000; a rate of 1.4%.

Business leaders in the West Midlands said they were pleased by the decline, despite the relatively shallow rate.

The Birmingham Chamber of Commerce said it was optimistic that the region’s tourism sector might act as stimulus to the labour market.

Tim Pile, chamber president, said: “Today’s announcement by the ONS indicates a steady downward trend in the unemployment rate for the West Midlands region. This confirms the chamber’s own research, which showed that 65% of firms sought to take on staff in Q2 2014.
 
“The ever-expanding tourist economy across the region will be pivotal in bringing more people into employment. A recent Marketing Birmingham report  shows that since 2006, the number of people visiting Birmingham has gone up by 12% (3.6 million), and with new developments such as the opening next year of New Street Station and the adjoining Grand Central shopping centre, there is every hope these numbers will continue to climb.
 
“With a number of world-class developments and an incredible retail offer we can expect the tourist industry across the region to take on more people and stimulate job growth.”

Disappointingly, pay including bonuses for employees was nationally, 0.2% lower than a year earlier. This was mainly due to an unusually high growth rate for April 2013 as some employers who usually paid bonuses in March paid them in April last year. Pay excluding bonuses for employees was 0.6% higher than a year earlier.