Midlands workers worst hit by slump

Jobs in the West Midlands have been the hardest hit by the recession, according to new figures revealed today.

The unemployment rate has risen by 4.2 per cent to stand at 10.5 per cent – the largest increase in the country.

The neighbouring East Midlands has been one of the regions least affected by the recession, along with the South East and East of England – highlighting key differences between their economies. These three regions saw increases of 1.4, 1.6 and 1.7 percentage points respectively in their unemployment rates.

The South East and the East of England had the highest employment rates at 77.3 per cent and 77.1 per cent.

The redundancy rate has also soared in the West Midlands, rising from 5.5 to 16.6 per 1,000 employees during the first quarters of 2008 and 2009.

This compares with a rate of 9.5 in the South East – and the UK average of 11.8 per 1,000 employees.

And the region recorded the highest fall in total exports – 29 per cent – during the same period, followed by the North East, which was down 18 per cent and Yorkshire and Humber, down 17 per cent.

The West Midlands has been particularly badly hit by the recession on its core manufacturing industry – particularly the automotive sector.

As car and van makers slowed down their production, auto parts companies in the region found demand grinding to a virtual halt and started having to lay off workers.

A string of manufacturing firms have gone into administration, most notably Birmingham van-maker LDV, while major industrial employers like steel manufacturer Corus and car maker Land Rover Jaguar have shed hundreds of workers in the West Midlands over the past year.

Business minister and Wolverhampton South East MP Pat McFadden said: "The critical issues for my constituency are jobs and skills.

"The West Midlands has been hard hit by the recession because of the severe decline in trade in manufactured goods.

"That's why the announcement to extend the car scrappage scheme is so important."