Autumn Budget critical to reversing West Midlands employment decline – Chamber

Business leaders in Greater Birmingham are calling on the Chancellor to act in the upcoming Autumn Budget after the West Midlands employment rate fell to 72.5 per cent in June to August, down 0.9 percentage points from the previous three-month period.

The region’s unemployment rate rose by 0.5 percentage points to 5.7 per cent, while economic inactivity increased by 0.3 percentage points.

Compared to the same period a year prior, the employment rate in the West Midlands has declined by 0.6 percentage points. Unemployment has also declined, by 0.5 percentage points, while economic inactivity has risen by 1.1 percentage points.

Nationally, the employment rate increased by 0.2 percentage points to 75.3 per cent.  Unemployment declined by 0.1 percentage points to 4.7 per cent and economic inactivity also declined by 0.1 percentage points to 20.9 per cent.

Speaking about the figures, Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “The latest figures underline the scale of the challenge facing the West Midlands.

“Employment has fallen, while unemployment and economic inactivity have increased, leaving the region continuing to underperform the UK as a whole.

“Falling vacancies across the country reinforce the caution captured in our latest Quarterly Business Report, with persistent recruitment difficulties and labour costs making it harder for firms to invest and create jobs.

“The Autumn Budget must reduce the cost of employment and give businesses room to grow. Cutting employer National Insurance contributions for under-25s, alongside targeted support on energy bills and business rates, would help unlock recruitment and investment.

“Beyond the budget, the forthcoming Milburn Review presents an important opportunity to address the structural challenges behind economic inactivity and skills shortages, helping more people into sustainable work while ensuring businesses can find the talent they need to invest and grow.”

For more insight into the challenges and opportunities facing local businesses, join the launch of our Q3 Quarterly Business Report on Thursday, which will explore the latest data from Greater Birmingham businesses and showcase initiatives helping entrepreneurs and firms to start, scale and grow.