Unemployment rises in region, while latest claimant count figures are released

The Office for National Statistics (ONS) said average regular earnings growth eased back to 4.8 per cent in the three months to September, down from 4.9 per cent in the previous three months.

This marked the lowest level since the three months to June 2022.

Earnings growth continues to outstrip inflation, however, as pay increased by 2.7 per cent in the three months to September with Consumer Prices Index (CPI) inflation taken into account.

The ONS said the rate of UK unemployment rose to 4.3 per cent in the three months to September, up from 4 per cent in the previous three months and far higher than the 4.1 per cent pencilled in by most economists.

This was the highest level since the three months to May, although the ONS said the estimate should be treated with caution given ongoing low response rates to its jobs survey.

The West Midlands figure was up to 4.5 per cent for July to September compared to  4.1 per cent for June to August. 

Data showed the number of UK workers on payrolls also fell, down by 5,000 between September and October to 30.4 million, the figures showed. Vacancies dropped yet again, down by 35,000 to 831,000 in the three months to October.

Liz McKeown, ONS director of economic statistics, said: “Growth in pay excluding bonuses eased again this month to its lowest rate in over two years.

“The number of people on payrolls fell slightly in September and while it remains up on the year, annual growth continues to slow.

“The labour force survey estimates show a different picture, however, we continue to advise caution when interpreting short-term changes in these estimates, as the improvements to data collection introduced at the beginning of the year are still feeding through.

“Job vacancies have fallen again, as they have been doing for more than two years now.”

The slowdown in wages growth has helped pave the way for interest rate cuts from the Bank of England, which last week delivered a reduction to 4.75% from 5% – the second decrease this year.

But it comes amid mounting warnings from business giants over the impact of the Chancellor’s Budget move to increase employers’ national insurance contributions on jobs and prices for consumers.

The likes of Asda, Sainsbury’s and Marks & Spencer have all revealed they will face a major cost hike as a result of the measure and signalled this could also result in some pressure on prices for shoppers.

Meanwhile, the West Midlands claimant count covering those claiming unemployment benefits for October was 215, 345, up from 214,930. 

In Shropshire, the number of claimants was 5,090, down from 5,120 while in Telford and Wrekin, the figure stood at 4,875, down from 4,190 the previous month.

In Powys, the number of claimants in October was 2,065, a drop from 2,120 the month before. 

In the Black Country, the claimant figures for Sandwell stood at 16,385, slightly up on September's figure of 16,380. 

Walsall's claimant count was 11,725 in October, up from 11,590 previously while the number for those claiming in Wolverhampton was 13,525, down from 13,640 in September. 

Dudley had 10,375 claimants, up ten from the month before. 

In total, Staffordshire had 16,415 claimants (3.1 per cent of the working population), down from 16,475 in September. 

Cannock Chase had 2,200 claimants in October, down from 2,220 the month before while Lichfield's figures stood at 1,555, compared to 1,595 in September.  

In Stafford, the the number of claimants for October was unchanged at 2,255 while, in south Staffordshire the number stood at 1,870, up from 1,845.  

The figures for Wyre Forest, including Kidderminster, stood at 2,080 claimants, which was up 20 on the month before.