Unemployment rises in West Midlands for third month in a row

According to figures from the Office for National Statistics, the total number unemployed across the region, including Shropshire, for the three months to June stood at 156,000, or 5.2 per cent, up from 5 per cent previously, and above London, where the rate stands at 5.1 per cent.

The figure was also the highest in the West Midlands region since May to July 2021.

The rate of UK unemployment also increased in the three months to June even as pay grew at the fastest rate since records began, the new figures show.

The ONS said the unemployment rate, nationally, hit 4.2 per cent during the quarter, up 0.3 percentage points from the previous three-month period.

It is the highest since the three months to October 2021, the ONS said, and brings the measure above pre-pandemic levels.

Statisticians said regular pay, which excludes bonuses, reached 7.8 per cent compared to a year earlier.

“This is the highest regular annual growth rate we have seen since comparable records began in 2001,” they said.

In real terms, regular pay rose 0.1 per cent for the year when adjusting for Consumer Prices Index including owner occupiers’ housing costs (CPIH) inflation.

It is the first time since October 2021 that real wages have increased, the ONS added.

But when adjusting for Consumer Prices Index (CPI) inflation, the measure was still 0.6 per cent down on the year. That is the smallest reduction since November 2021.

The data shows the number of payrolled employees increased by 97,000 to 30.2 million in July, although the ONS said this is a “provisional estimate and is likely to be revised when more data are received next month”.

ONS director of economic statistics Darren Morgan said: “The number of unemployed people has risen again while the number of people working has fallen back a little.

“This is mainly due to people taking slightly longer to find work than those who started job hunting in recent months.

“The drop in those neither working nor looking for work is mainly among those looking after their family or home.

“Meanwhile the number of people prevented from working by long-term sickness has risen again to a new record.

“Job vacancies have now fallen over a quarter of a million since this time last year. However, they remain significantly above pre-Covid levels.

“Earnings continue to grow in cash terms, with basic pay growing at its fastest since current records began.

“Coupled with lower inflation, this means the position on people’s real pay is recovering and now looks a bit better than a few months back.”

Statistics for those claiming unemployment benefits in the West Midlands, including Universal Credit, in July was up at 182,200, compared to 181,655 last month.

In Shropshire, the number of claimants was 4,495, up from 4,460 while Telford & Wrekin saw a drop from 4,040 to 4,010.

The number of claimants in Powys stands at 1,680, down from 1,735 the previous month.

Louise Johnson, Partnership Manager Shropshire, Telford & Wrekin, Department for Work and Pensions, said: "The Claimant Count figures released show a year-on-year reduction in those who are claiming Unemployment benefits and looking for work, in both Shropshire and Telford boroughs.

"There were falls in the number of claimants in the 50 plus age groups across the region."

She added: "There are currently lots of activity in the job centres and during the busy summer season. Job centres are focussed on working with employers to increase the supply of new workers to help fill their vacancies, holding pre-employment training in Telford and Shrewsbury."

In Wolverhampton, the number of claimants for July stood at 12,705, down 60 on the previous month, standing at 7.7 per cent of the working population, while the figure for Dudley was 9,165 compared to 9,105 (4.6 per cent of the working population) previously.

The number for Walsall stood at 9,810, down by 80, while Sandwell's figures stood at 13,675, a rise of 95 on the previous month.

In Birmingham, the number claiming unemployment benefits, including Universal Credit, was 63,695 (8.6 per cent of the working population), a rise on the previous month.

In Staffordshire, the number of claimants fell slightly to 15,270, from 15,300 previously.

In Cannock Chase, the claimant figures are 2,225, up from 2,170 while, in Lichfield, the number is 1,530, down from 1,540.

For South Staffordshire, the number of people claiming unemployment benefits, including Universal Credit, is 1,710, down from 1,740 the previous month.

In Stafford, the number is 1,995, representing no change while the number of claimants in Tamworth stands at 1,705.

In the Wyre Forest, including Kidderminster, the number of claimants now stands at 1,840, down from 1,855 in June.

Cathy Taylor, employer and partnerships manager at Jobcentre Plus in Wolverhampton, said efforts at Black |Country Jobcentres were now being focused on the 18 to 24-year-old age group and future jobs fairs across the area would feature more opportunities for them.

A jobs fair being held tomorrow at Bilston Jobcentre will feature new opportunities at local Aldi stores.

Jobcentres in the Black Country are also working closely with HS2 Ltd on recruiting for a variety of jobs on the high speed rail project.

Emily Stubbs, senior policy and projects manager at Greater Birmingham Chambers of Commerce, said: “Headline indicators suggest that since the start of the year, the labour market in the West Midlands, much like the national labour market, has seen a significant number of previously economically inactive individuals beginning to look for work.

“Unfortunately, while the regional employment rate has increased slightly, the unemployment rate in the West Midlands has risen further, and remains the highest of any region in the UK.

“While increases in pay will be received positively by those in employment, wage inflation, driven by tight labour markets, is further increasing the unrelenting cost pressures many firms are already facing. This will raise concerns about subsequent impacts on broader inflation and interest rates.

“Establishing the right conditions for businesses to invest in local talent, by reducing upfront business costs, enabling more flexible use of apprenticeship funding and facilitating access to rapid, modular training courses is critical to addressing these challenges.

“Leveraging the legacy benefits of the Birmingham 2022 Commonwealth Games also offers local stakeholders a key opportunity to address skills shortages across the region.

“Where business remain unable to access the talent they need in the UK, national stakeholders must ensure that this is reflected in a comprehensive and up to date Shortage Occupation List.”