Challenging conditions place strain on West Midlands job market – Chamber

The West Midlands job market continues to feel the strain of a challenging economic environment, business leaders said today.

Figures released this morning by the Office for National Statistics (ONS) reveal West Midlands unemployment crept up by 0.1 per cent (to 6.1 per cent) in the three months to December 2025.

Employment dropped by 0.7 per cent from the previous three-month period, while economic inactivity increased by 0.5 per cent – reflecting a lower proportion of residents in work than in the previous quarter.

Nationally, the jobless rate ticked up to 5.2 per cent, the highest since the three months up to January 2021.

It came as annual wage growth slowed, dropping to its lowest level in almost four years.

The ONS, however, has continued to advise caution when interpreting changes in the monthly unemployment rate and job vacancy numbers over concerns about the reliability of the figures.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Today’s figures point to a labour market that remains under pressure in the West Midlands.

“Unemployment continues to edge upwards, employment has slipped, and economic inactivity has risen over the last three months - reflecting a lower proportion of residents in work and more outside the labour force than in the previous quarter.

“Whilst nationally, we saw similar trends, it appears that challenging economic conditions are having a more acute impact here in the West Midlands labour market.

“Cooling wage growth may offer businesses some relief on pay‑related price pressures but still leaves many juggling higher wage bills alongside elevated operating costs and uncertainty around forthcoming employment law changes.

“This combination of uncertainty and ever-increasing cost pressures is restricting firm-level investment, hindering job creation and stifling economic growth.

“The Government must address this with a plan to ease cost pressures, clarity and sensible pacing on employment reforms, and the introduction of practical interventions in skills, workforce health and transport."

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