Unemployment rate flat in West Midlands but benefit claimants down

There were 139,000 out of work – 4.7 per cent of the working population,

Britain's rate of unemployment edged higher in the three months as the country heads for what is feared will be the longest recession in a century, official figures have shown.

The rate of unemployment stood at 3.6 per cent, up from 3.5 per cent in the three months to August, the Office for National Statistics said.

Across the West Midlands the numbers claiming unemployment benefits, including Universal Credit, were down last month. The total of 175,005 was down 2,400 on September – a rate of 4.8 per cent.

Walsall had 160 fewer claimants at 9,450 (5.4 per cent) with Sandwell down by 115 to 13,325 (6.5 per cent). Dudley dropped by 100 to 9,215 (4.7 per cent) and Wolverhampton fell by 85 to 12,030 (7.4 per cent).

In Staffordshire the claimant total was 14,365 (2.7 per cent) – a fall of 195.

Lichfield was down 35 to 1,480 (2.4 per cent) and South Staffordshire had 30 less claimants at 1,740 (2.6 per cent).

Cannock Chase – up 25 to 2,040 (3.2 per cent) – and Stafford – up five to 2,040 (2.5 per cent) – bucked the downward trend.

Wyre Forest, including Kidderminster, had a fall of five to 1,925 (3.3 per cent).

Cathy Taylor, Jobcentre employer and partnership manager in Wolverhampton, said: “Jobcentre employer advisers are busy focussing on helping employers fill their seasonal and permanent vacancies in a variety of sectors including hospitality, retail, and logistics. In November we have held a number of jobs fairs aimed at supporting all customer groups with specific emphasis on 18 to29-year-old jobseekers and older workers.

“The changes to Universal Credit and the older workers’ offer means we can help even more claimants receive intensive support, to help them get into work and seize opportunities to increase their job prospects and pay."

Most economists had expected the national unemployment rate to remain unchanged.

It came as more people dropped out of the workforce, with a hike in the proportion of people neither looking for work nor working.

Over half a million working days were lost to strikes in August and September – the highest two-month total in more than a decade.

There was another fall in the number of vacancies, down 46,000 quarter on quarter to 1.2 million, as increasing numbers of employers "hold back on recruitment" amid mounting economic gloom, according to the ONS.

Wage rises continued to be far outstripped by rocketing prices, with average earnings excluding bonuses down 3.8% when taking account of Consumer Prices Index (CPI) inflation, the figures showed.

It follows official data last week revealing the economy shrank by 0.2% in the third quarter, putting the UK on course for a prolonged recession amid a punishing cost-of-living crisis.

Chancellor Jeremy Hunt said that tackling inflation was his "absolute priority" as he prepares to outline a raft of expected tax hikes and spending cuts in this week's delayed autumn Budget.

He said: "That guides the difficult decisions on tax and spending we will make on Thursday.

"Restoring stability and getting debt falling is our only option to reduce inflation and limit interest rate rises."

More timely data showed the number of payrolled workers lifted 74,000 or 0.2% between September and October to 29.8m, but these figures are subject to revision.

The wider labour force survey figures show that the number of Britons in unemployment fell by 69,000 to 1.2m between the second and third quarters, but that the number of people in employment also dropped by 52,000 to 32.7m. For the West Midlands the employment total was 2.8m – a rate of 74.1 per cent.

Economic inactivity increased by 0.2 percentage points quarter on quarter to 21.6 per cent, driven by those aged 16-24 and 35-49 years.

Darren Morgan, director of labour and economic statistics at the ONS, said rising levels of inactivity in the UK since the pandemic has "largely been caused by older workers leaving the labour market altogether, but in the most recent quarter the main contribution has actually come from younger groups".

He added: "August and September saw well over half a million working days lost to strikes, the highest two-month total in more than a decade, with the vast majority coming from the transport and communications sectors.

"With real earnings continuing to fall, it's not surprising that employers we survey are telling us most disputes are about pay."

Minister for Employment, Guy Opperman, said: “The UK labour market has remained resilient in the face of global challenges, with a low unemployment rate and a record number of people on payrolls.

“Whilst these figures are encouraging, we recognise that families are facing rising prices and employers need support to fill vacancies with a reliable workforce. Our focus is on making sure people looking for work, and those already in work, have the opportunity to boost their skills and keep more of what they earn – helped by our extensive network of Jobcentres.

“Our priority will always be to support the most vulnerable and we recognise that people are struggling with rising prices, which is why we are protecting millions of those most in need with at least £1,200 of direct payments.”

British Chambers of Commerce head of people policy, Jane Gratton, said: “The challenges facing businesses in the UK labour market remain very much the same. We have a critical shortage of skills and labour that is damaging firms and holding back growth.

“Once again, the data shows the number of job vacancies remains at record highs, adding to inflationary pressures.

“With confidence waning as we enter recession, and the expectation of even tougher economic times ahead, we may see more recruitment freezes, job losses and business closures."