Latest figures show West Midlands employment rate best in the UK

UNEMPLOYMENT in the West Midlands has seen the largest decline in the country – falling by 22,000 according to latest figures.

Data from the Office for National Statistics shows the region’s rate fell by 0.9% during the July to September quarter when compared to the three-month period between April and June.

There are now 151,000 people officially classed as unemployed in the region, a rate 5.2% – still above the UK average of 4.8% but nevertheless encouraging.

There was also good news of the employment front, with the rate rising 1.5% – equivalent to 72,000 – to 73.4% during July to September quarter.

The performance – while below the UK average of 74.5% – was still the best in the country.

The news has been welcomed by business leaders and two of the candidates in next year’s election for West Midlands Mayor, Andy Street (Conservative) and Beverley Nielsen (Lib Dem).

Paul Faulkner, chief executive of the Greater Birmingham Chambers of Commerce, said the figures highlighted the excellent progress being made on unemployment in the West Midlands.

“We see a simultaneous surge in our employment rate balanced against significant reductions in our rates for both unemployment and inactivity. These figures are clear indications of the strength of our regional economy and are reflective of the confidence that is returning to the West Midlands,” he said.   

“Whereas historically we have struggled to make up ground on national labour market performance, today’s figures see us surpassing a number of regional counterparts and importantly bring us within touching distance of national averages.

“However, with employment levels rising, employers are now having to recruit from a smaller talent pool. Our latest Quarterly Business Report identified that approximately 60 per cent of firms had faced difficulties recruiting in quarter three and we know that we still have issues with skills gaps in the region. An effective way to address these skills gaps is through training apprenticeships.

“A wide array of apprenticeship reforms are set to come into effect from April next year.  It is vital that business leaders of all shapes and sizes look ahead and understand how they might be impacted by the reforms as well as the opportunities that will be available to them. We would encourage all business leaders to attend the GBCC’s apprenticeship events or get in touch with us to find out more.”

Mr Street said his goal of eradicating youth unemployment in the West Midlands was now achievable; and was a result that should be striven for in order to create a region that truly worked for all.

He said that across the West Midlands, youth unemployment had been on the decrease with the number of young people not in work, education or training having halved since 2013.

Birmingham now has 6,000 less unemployed 18 to 24 year olds than it did three years ago, effectively halving the total. Coventry and Walsall have also seen decreases of more than 60% in the same time, he added.

“The latest figures are really encouraging but there’s still a substantial challenge. There are pockets of unemployment and we must address that – youth unemployment also remains a major challenge for the West Midlands,” he said.

Meanwhile, Ms Nielsen said: “Eradicating youth unemployment will be on everyone’s to-do list.

“(But) there is much more to do to sort this out, with almost three quarters of employers telling us that school curriculum is too narrow, that school leavers need more support to be work ready and with many employers ignoring the recruitment of young people until they are older than 19.”