Concerning labour market figures underline caution among West Midlands firms – Chamber
Business leaders in Greater Birmingham today called on the Chancellor to use the forthcoming Autumn Budget to stimulate the job market – with new figures painting a concerning picture for the West Midlands.
Office for National Statistics (ONS) data released this morning revealed a decline in employment and rise in unemployment in the West Midlands during the three months to July.
Economic inactivity in the region also continued to climb, the ONS said.
The picture nationally was more stable. The UK employment rate held steady at 75.1 per cent, as did unemployment at 4.9 per cent, while economic inactivity nationally fell slightly, down 0.1 per cent to 20.9 per cent.
Meanwhile, vacancy numbers across the UK also continued to soften. Early estimates for June to August 2026 point to a fall of 8,000 vacancies (1.1 per cent) to 702,000, compared with March to May 2026.
Vacancies have remained broadly flat since the start of the year - down just 16,000 since the January to March period.
The total is now at its lowest level outside the pandemic since August to October 2014, when vacancies stood at 701,000.
Private sector wage growth remained subdued, with average weekly earnings, excluding bonuses, 2.9 per cent higher than a year earlier in the three months to July - slightly above the 2.8 per cent figure analysts had expected.
Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “The latest figures paint a concerning picture for the West Midlands. Employment has fallen, while unemployment and economic inactivity have risen, reinforcing the sense that businesses remain cautious about recruitment and investment.
“The continued decline in vacancies also suggests that higher labour and operating costs are weighing heavily on employers.
“The Autumn Budget must give firms the confidence and headroom to create jobs, invest and grow.
“We are calling for employer National Insurance contributions to be cut for under-25s, targeted relief on energy bills and business rates, and the restoration of consistent, locally delivered export support to help more SMEs trade internationally.
“Businesses want to grow, but they need the right conditions and practical support to do so.
“Our Business Growth Studio Conference this October will bring together expert insight, useful connections and actionable guidance to help firms navigate complexity and pursue their growth ambitions with confidence.”
