Unemployment falls in the West Midlands

There were 127,000 out of work in the region – down 16,000 on the August to October figures. The unemployment rate was 4.3 per cent. On the year the unemployment figure was down 11,000.

Nationally unemployment increased in the three months to 1.24 million, while the number who were in work remained unchanged at 32.78m, new figures from the Office for National Statistics show.

The national unemployment rate hit 3.7 per cent, up from 3.5 per cent in the previous quarter.

The ONS said that in the latest period the number of people out of work for up to six months rose, driven by 16 to 24-year-olds.

There was also an increase in the six- to 12-month unemployment figure, but a drop in the number of people out of work for more than a year.

Figures for those claiming unemployment benefits, including Universal Credit, rose by 490 in the West Midlands in December from November to 177,465 (4.8 per cent of the working population.

In the Black Country and Staffordshire claimant figures were mainly up for December.

Wolverhampton had an increase of 285 from November to 12,415 (7.6 per cent of the working population) with Sandwell up 125 to 13,665 (6.7 per cent). Dudley was up 20 at 9,265 (4.8 per cent, but Walsall fell 35 to 9,510 (5.5 per cent).

Staffordshire had an increase of 105 claimants to 14,640 (2.7 per cent) with Stafford up 35 at 2,085 (2.5 per cent). Lichfield was also up 35 to 1,555 (2.5 per cent) and South Staffordshire increased by 15 to 1,725 (2.6 per cent). Cannock Chase's figures were unchanged at 2,045 (3.2 per cent).

Wyre Forest, including Kidderminster, was up by five to 1,950 (3.3 per cent).

Gerry Lyng, Black Country employer and partnership manager for Jobcentre Plus, said that there had been falls in youth unemployment in Walsall and Wolverhampton partly due to the success of the Pathfinder project in the area.

He said that the Youth Hub project at The Way in Wolverhampton was also proving successful in connecting young people with work coaches.

"Across the Black Country there is also a big focus on trying to bring people over 50 or who have opted out of the labour market back into the workforce," he added.

ONS director of economic statistics Darren Morgan said: "In the most recent three months, employment levels were largely unchanged on the previous three months.

"However, unemployment rose, driven by more young people who have only recently become unemployed, meaning overall there was a small increase in people actively engaged in the jobs market, whether working or looking for work.

"Vacancies fell again, though remaining at very high levels, with the number of people looking for work broadly in line with the number of jobs being advertised.

"The real value of people's pay continues to fall, with prices still rising faster than earnings. This remains amongst the fastest drops in regular earnings since records began."

Minister for Employment, Guy Opperman, said: “It is positive to see more people moving into jobs or taking steps to search for work.

“Helping people to secure a reliable income is a priority as we start this year. Across our Jobcentres we provide one-to-one tailored support for every jobseeker, breaking down barriers for those thinking about re-entering the workforce, such as older workers or those who have been out of work due to ill health.

“We know the challenges people are facing with the cost of living and have already provided substantial support to help with rising bills, while millions of vulnerable households will continue to be supported with up to £1,350 in additional direct cash payments over the next financial year.”

Jonathan Ashworth MP, Labour's shadow work and pensions secretary, said of the last unemployment figures: "Today's figures show the Tories are totally bereft of ideas when it comes to tackling the cost-of-living crisis, growing the economy and supporting people into work.

"Real wages are plummeting, almost two-and-a-half million people are out of work because of sickness and far too many people – especially the over-50s – aren't getting the support they need to either stay in work or to go back to work."

Jane Gratton, head of people policy at the British Chamnbers of Commerce, said:  “Today’s figures will come as no surprise to businesses up and down the country who are desperately trying to fill record numbers of vacant roles.

“With over 1.16 million job vacancies, businesses are still experiencing a relentlessly tight labour market. If firms can’t hire the staff to fulfil their order books, any room for growth is extremely limited.

“Government is heading in the right direction with its plans to help bring economically inactive workers back into the labour force, especially older workers who left in their droves when lockdown ended.

“But we need to see more action. There must be carefully tailored careers advice, job seeker support and rapid re-training opportunities to help employers harness the skills and experience of older workers."

Matthew Percival, the Confederation of British Industry’s director for people and skills, said: “The continued evidence of younger and older workers returning to employment is welcome news. There are early signs of softening in the labour market, but many businesses are still struggling to hire and record pay growth is not yet easing the cost of living crisis.”

“The Government needs to pull every lever to ease shortages and strengthen the case for the business investment that is needed to drive growth and living standards. This means helping more people to overcome the barriers like the cost and availability of childcare or ill-health that are preventing them from working, and updating the Shortage Occupations List."