Unemployment and claimants down again in the West Midlands

The Office for National Statistics said payrolled workers jumped by 0.6 per cent between September and October to 29.3 million – "well above" levels seen before the pandemic struck.

The unemployment rate also fell once more to 4.3 per cent between July to September, down from 4.5 per cent between June and August, in spite of the furlough scheme coming to an end on September 30. There were 1.4 million unemployed, down 152,000 on the previous quarter, while employment rose 247,000 to 32.5m.

In the West Midlands the unemployment rate was 4.8 per cent with 141,000 out of work and the employment rate was at 59.3 per cent – 2.79m.

The region also saw a drop in the numbers claiming unemployment benefits, including Universal Credit, last month.

The total was down 7,780 to 215,265 – 5.9 per cent of the working population.

Wolverhampton had the highest rate of claimants at 8.7 per cent and was down by 125 to 14,280.

In the Black Country Walsall saw the biggest drop of 440 to 12,200 (7 per cent), followed by Sandwell which was down 430 to 16,040 (7.8 per cent). Dudley claimants fell by 280 to 11,505 (5.9 per cent).

Staffordshire saw a drop of 885 to 18,560 (3.5 per cent). Cannock Chase was down 150 to 2,510 (3.9 per cent), Lichfield had 120 fewer claimants at 1,980 and Stafford dropped by 105 to 2,500 (three per cent). South Staffordshire's total fell by 55 to 2,270 (3.4 per cent).

Wyre Forest, including Kidderminster, saw 80 fewer people claiming at 2,470 (4.2 per cent).

Cathy Taylor, business development manager for Jobcentre Plus in Wolverhampton, said there were shortages of staff in some sectors in the region, particularly in hospitality, logistics and construction.

"We are looking to do more work with the hospitality sector as a whole to train people," she added.

Among businesses currently recruiting is a meat packing business on the i54 at Wolverhampton which is looking to fill 30 food production operative positions through recruiter Staffline.

The ONS said survey responses so far suggest only a small number of redundancies have been made among the 1.1 million still on furlough when the scheme closed.

Sam Beckett, ONS head of economic statistics, said: "It might take a few months to see the full impact of furlough coming to an end, as people who lost their jobs at the end of September could still be receiving redundancy pay.

"However, October's early estimate shows the number of people on the payroll rose strongly on the month and stands well above its pre-pandemic level."

She added: "There is also no sign of an upturn in redundancies and businesses tell us that only a very small proportion of their previously furloughed staff have been laid off."

Chancellor Rishi Sunak hailed the latest jobs figures as being "testament to the extraordinary success of the furlough scheme".

He said: "We know how vital keeping people in good jobs is, both for them and for our economy - which is why it's fantastic to see the unemployment rate falling for nine months in a row and record numbers of people moving into employment."

The data also showed that job vacancies reached a new record high, up 222,000 quarter on quarter to 1.17 million in the three months to October and 388,000 higher than before the pandemic as firms battled to hire amid mounting labour shortages.

Britain's jobs market has now recovered above levels before the Covid-19 crisis hit, with the furlough scheme cushioning the blow for workers.

Almost nine million British workers were on the support scheme at the peak.

But the ONS showed the increase in payrolled workers in September was not as big as first thought, with a downward revision to 171,000 added in the month, against the 207,000 initially estimated.

Wages growth eased back, with total average weekly earnings up 5.8 per cent between July and September, down from a 7.2 per cent hike previously.

Earnings figures continue to be skewed by certain factors, with lower paid jobs being hit hardest by the pandemic, but the growth is thought to be easing as fewer people came off furlough and saw their pay recover.

Minister for Employment Mims Davies said: “With over 100,000 young people landing roles through the Kickstart scheme, more people on payrolls this quarter in all corners of the country, and unemployment continuing to fall, it is clear our Plan for Jobs is working.

“From Ashford to Aberdeen, our brilliant DWP Work Coaches are matching jobseekers to local vacancies in growing sectors and supporting people – at any age and any career stage – to seize that next opportunity, get into work and progress.”

Councillor Simon Bennett, deputy leader of the Conservative Group on Wolverha,pton Council, said: “It is again encouraging to see the unemployment numbers drop in Wolverhampton, but more needs to be done to address the disproportionate rates within the city. To have one ward with a rate of unemployment three times greater than that of two others requires urgent attention. The continuing high rate of youth unemployment is also a concern and I hope that the council’s belated focus in this important area will soon start to pay dividends for our young people.”

Matthew Percival, Confederation of British Industry director of people and skills, said: “The UK’s jobs outlook remained strong over the summer with employment figures rising and unemployment falling. However, ongoing supply chain issues, labour shortages and record high vacancies have put a brake on growth.

“The Supply Chain Advisory Group is a positive development, demonstrating the Government’s willingness to work in partnership with business to tackle current challenges. Companies will continue to face these issues well into the New Year, so it’s important this spirit of collaboration is maintained to safeguard the UK’s economic recovery.”

British Chamber of Commerce head of economics, Suren  Thiru, said: "The marked rise in payroll employment suggests that the end of furlough had little effect on the UK jobs market in October, as demand for labour continued to surge.

“Record job vacancies suggest that the chronic staff shortages encountered by businesses are intensifying and this could derail the recovery by forcing firms into a more long-lasting decline in their operating capacity.

“Although earnings growth remains elevated, achieving wage increases over a sustained period may prove challenging without a marked improvement in productivity and an easing of the cost pressures faced by firms.

“Despite the success of furlough, the likely squeeze on hiring intentions from next year’s national insurance hike and more sluggish growth could mean that labour market conditions start to weaken over the medium term.

“More significant support is needed to help firms access the skills they need when they can’t recruit locally, including supporting the hardest hit sectors through expansion of the Shortage Occupation List.”