Express & Star

Revealed: West Midlands has highest unemployment benefit claimants

The West Midlands has the highest number of unemployment claimants out of all combined authority areas, according to new data.

By Local Democracy Reporter Gurdip Thandi
Published

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A State of the Region report, by West Midlands Combined Authority, revealed the total number of people aged 16-64 claiming unemployment benefits in the WMCA area was 8.1 per cent compared to 4.2 per cent for the UK in October 2024.

This is the highest rate amongst all the Combined Authority areas.

The number of youth claimants as a proportion of residents aged 18-24 was 9.5 per cent compared to 5.4 per cent for the UK in October 2024.

The West Midlands Combined Authority office in Summer Lane, Birmingham. PIC: Google Street View
The West Midlands Combined Authority office in Summer Lane, Birmingham

Overall employment, up to June 2024, is also lower than national averages with the Combined Authority area coming in at 69.6 per cent compared with 75.7 per cent for England.

Median weekly pay for full-time workers also lags behind as, in 2024, the figure for the area stood at £673 – below the England average of £732.

Other statistics showed the WMCA economy grew by 3.2 per cent (Gross Domestic Product) between 2021 to 2022 but remains slightly smaller than pre-pandemic levels.

The report also showed uneven growth across the region with Wolverhampton experiencing a 5.9 per cent GDP growth, while Sandwell had a GDP growth of 0.9 per cent.

Birmingham, Dudley and Wolverhampton surpassed their pre-pandemic economic sizes, however Coventry, Sandwell, Solihull, and Walsall remain at a lower economic size.

In better news, the WMCA area is successfully attracting new investment, creating over 6,000 jobs in 2023/24, more than any other combined authority area outside of London.

The social economy in the WMCA area is also thriving, with approximately 9,300 organisations providing over 100,000 jobs in 2024.

The report said: “While our economy has grown, it has done so at a slower pace compared to the overall growth in the UK.

“Moreover, households are not experiencing the benefits of this growth, as their disposable income is increasing at a rate below the UK average.

“Our inclusive growth approach asserts that to fully unlock the region’s economic potential and achieve prosperity for all, everyone must have the opportunity to participate in and benefit from economic growth.

“Therefore, the development of a local growth plan must not only focus on fostering high-growth clusters but also consider its positive impact on households and improving the quality of life for everyone.”