Number claiming unemployment benefits almost doubles in one year in West Midlands

Last February there were 142,260 claiming but the latest figures, released by the Office for National Statistics on Tuesday, show it has risen by 129,170 to stand at 271,430 last month – 7.4 per cent of the working population.

The number claiming benefits, including Universal Credit, was up 11,330 on January.

In the Black Country, Sandwell saw the biggest rise of 735 to 20,060, a rate of 9.8 per cent of the working population. For the year the rise has been 9,570.

Walsall was up 670 to 15,375 (8.9 per cent) – 7,060 for the year – and Wolverhampton increased by 600 to 17,350 with the annul increase 7,210. The city’s rate of 10.6 per cent is the second highest of any authority in the region.

Dudley rose by 490 to 14,600 (7.5 per cent). It has seen an extra 6,1555 claimants in the space of a year.

Staffordshire had a monthly increase of 1,210 to 25,650 (4.8 per cent) with Stafford up 160 to 3,465 (4.2 per cent). South Staffordshire rose by the same number to 3,080 (4.6 per cent) with Cannock Chase up 140 to 3,495 (5.5 per cent) and Lichfield having 130 more claimants at 2,780(4.5 per cent).

For the year, Staffordshire’s total more than doubled by 13,690. Stafford has 1,865 more, Cannock 1,835, South Staffordshire 1,765 and Lichfield 1,485.

Wyre Forest, which includes Kidderminster, was up 150 for the month to 3,585 (6.1 per cent) and is up 2,000 on the year.

Nationally, unemployment stood at 1.7 million for the three months to January with 32.3m in employment. The unemployment figure for the West Midlands for the three months was 177,000 – down 4,000 on the previous three-month period– with the unemployment rate at six per cent. Numbers in employment in the region were 2.67 million.

Sam Jackson, new recruitment leader for Jobcentre Plus in the Black Country, said the 18 to 24-year-old age group had been worst hit in the region by job losses or lack of vacancies in the last 12 months.

“We are now concentrating on training to ensure they have the skills to meet the new job opportunities that are coming on stream,” she said.

The electric vehicles and tech sector are expected to see big increases in employment in the region over coming months.

Payrolls increase across UK

The number of workers on UK payrolls increased for the third month in a row in February but has fallen by nearly 700,000 since the start of the pandemic, according to official figures.

The ONS said the number of payrolled workers rose by 68,000 (0.2 per cent) between January and February.

Overall there were 693,000 fewer workers on payrolls than in February 2020, with more than half – 368,000 jobs - lost in the hospitality sector as lockdowns and restrictions hammered the industry.

The ONS added that 123,000 payroll jobs were also lost in the hard-hit retail sector.

Sam Beckett, ONS head of economic statistics, said: "After yet another monthly increase, there were almost 200,000 more employees on payroll in February than three months earlier, although that is still nearly 700,000 down from the start of the pandemic.

"Of the decrease since then, almost two-thirds has been among the under-25s, over half has been in hospitality and almost a third has been in London."

Chancellor Rishi Sunak said: "Coronavirus has caused one of the largest labour market shocks this country has ever faced, which is why protecting, supporting and creating jobs has been my focus throughout this crisis."

British Chambers of Commerce head of economics Suren Thiru said:  “Extending furlough will limit the peak in job losses. However, with many firms struggling with the damage done to their cashflow by a year of covid restrictions, unemployment is likely to remain on an upward trajectory until well beyond a full reopening of the economy.

“While the extension to the job support schemes will protect millions of jobs and livelihoods, it is vital that those businesses and individuals who remain excluded from government support get the assistance they need to navigate a difficult period.”