Chamber urges Chancellor to ease cost pressures as West Midlands records highest unemployment rate in country
Business leader of Greater Birmingham is urging Chancellor Rachel Reeves to use the upcoming Autumn Budget as a stepping stone to alleviate mounting cost pressures firms face.
The call comes after West Midlands recorded the highest unemployment rate in the country, according to the latest Office for National Statistics (ONS) reports published today.
The figures revealed the unemployment rate rose by 0.9 percentage points to 6.0 per cent, while the rate of economic inactivity declined to 21.9 per cent.
The employment rate in the West Midlands rose by 1.3 percentage points to 73.5 per cent during May to July 2025 - compared with the previous 3-month period.
Nationally, the employment rate rose to 75.2 per cent and unemployment also rose to 4.7 per cent while economic inactivity declined by to 21.1 per cent.
Meanwhile, the estimated number of vacancies in the UK fell by 10,000 (1.4 per cent) on the quarter, to 728,000, in June to August 2025.
This is the 38th consecutive period where vacancy numbers have dropped compared with the previous three months, with vacancies decreasing in 9 of the 18 industry sectors.
Speaking about the figures, Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce said: "The West Midlands now has the highest rate of unemployment in the country.
"While the ONS cautions against comparisons with volatile estimates throughout 2024, it appears unemployment in the region has risen sharply over the past year, at a rate well above the national average.
"In part, rises in both employment and unemployment have been driven by significant decreases in economic inactivity, as many who previously left the workforce have now returned.
"However, mounting cost pressures on businesses have limited investment in skills and jobs, meaning that many seeking work – particularly in the West Midlands - are unable to access employment.
"Our surveying reveals that labour costs, exacerbated by national insurance hikes earlier this year, remain the biggest cost pressure for Greater Birmingham firms.
"Meanwhile, the looming prospect of the Employment Rights Bill and rumours of further tax increases in the Autumn budget are weighing further on local businesses.
"Regionally, we will continue to work with businesses and stakeholders to understand precisely why these challenges have been felt so acutely in the West Midlands, and to tackle these underlying factors.
"Nationally, if the Chancellor is serious about unlocking growth, she must use the Autumn Budget as an opportunity to alleviate cost pressures, enabling firms to attract, grow and retain the people and skills needed."
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