Unemployment rate rises in the West Midlands

There were 153,000 out of work in the region – up 5,000 from the previous three-month period when the rate was 4.9 per cent of the working population. The number in employment was 2.83 million.

Nationally the unemployment rate was down from 3.9 to 3.8 per cent with 1.29m out of work and 32.4m in employment.

Numbers claiming unemployment benefits, including Universal Credit in the West Midlands fell last month by 3,370 to 195,850 - 5.3 per cent of the working population.

In the Black Country Dudley saw the biggest fall of 195 to 10,315 (5.3 per cent) with Walsall down 155 to 10,910 (6.3 per cent) and Sandwell dropping 150 to 14,680 (7.2 per cent). Wolverhampton had 75 fewer claimants at 13,065 (eight per cent).

Staffordshire's claimant total fell by 445 to 16,365 (3.1 per cent) with Stafford down 70 at 2,275 (2.7 per cent), South Staffordshire falling 45 to 2,030 (three per cent) and Cannock Chase also down 45 to 2,215 (3.5 per cent). Lichfield's total was down 35 to 1,685 (2.7 per cent).

Wyre Forest, which includes Kidderminster, had a drop of 45 to 2,230 (3.8 per cent).

Cathy Taylor, business development manager for JobCentre Plus in Wolverhampton, said that the fall in claimants was being helped by more vacancies coming on stream across the Black Country.

"We have now got record levels of vacancies and we are working with employers to match the right individual to the right job.

"We have set up employer hubs – suites where employers can deliver information sessions and interview people – to help key industries like manufacturing, IT, the care sector and hospitality," she explained.

"There are opportunities in every sector. Mitie is recruiting for cleaning operatives and there are jobs becoming available for the Commonwalth Games in security and hospitality," she added.

Darren Morgan, director of economic statistics at the Office for National Statistics, said: "Overall, employment in December-February was little changed on the previous three months, and so is still below its pre-pandemic level.

"While unemployment has fallen again, we are still seeing rising numbers of people disengaging from the labour market, and as they aren't working or looking for work, are not counted as unemployed.

"Early estimates suggest there was only a small increase in the number of employees on payroll in March, while job vacancies, although again at a record high, rose at their slowest for nearly a year.

"While strong bonuses continue to mitigate the effects of rising prices on people's total earnings, basic pay is now falling noticeably in real terms."

Chancellor Rishi Sunak said: "Today's stats show the continued strength of our jobs market, with the number of employees on payrolls rising once again in March and unemployment falling further below pre-pandemic levels.

"We are helping to cushion the impacts of global price rises through over £22 billion of support for the cost of living this financial year.

"We're also helping people to find new jobs, and ensuring work always pays as this is the best way to support households in the longer term."

Pat McFadden, Labour's shadow chief secretary to the Treasury and Wolverhampton South East MP, said: "Today's figures show that Conservative choices are leaving real wages squeezed and people worse off.

"At a time like this, Rishi Sunak could have chosen a one-off windfall tax on huge oil and gas company profits to cut household energy bills by up to £600.

"Instead, he's decided to make Britain the only major economy to land working people with higher taxes in the midst of a cost-of-living crisis."

Eugenia Migliori, the Confederation of British Industry's principal policy adviser, said: "The UK economy continues to create jobs, but businesses are still struggling to hire and pay is failing to keep up with inflation. Persistent skills and labour shortages, alongside rising costs, is putting a strain on households and dampening business optimism for the months ahead.

"Addressing the skills challenges facing the country requires bold action. Replacing the apprenticeship levy for a new Skills Challenge Fund will allow firms to fund more high-quality training especially in areas of future demand. Acting now will help us meet the UK's long-term skills need."

British Chambers of Commerce head of economics Suren Thiru said: “While payroll employment rose slightly and the unemployment rate continues to fall, the headline figures continued to be flattered by significant underlying factors, including a shrinking workforce.

“Increasing vacancies highlights the historic hiring crunch facing firms. With rising economic inactivity confirming that lots of workers have seemingly quit the jobs market completely, severe staff shortages may remain a persistent drag anchor on economic activity."