Concerning rise in unemployment compounds business challenges - Chamber

Business leaders in Greater Birmingham have called for urgent government intervention to help skilled individuals access job opportunities, following a “concerning ” increase in unemployment across the region.

Latest figures from the Office for National Statistics reveal West Midlands unemployment climbed by 0.4 per cent to five per cent between December 2022 to February 2023 and March to May 2023.

Alongside Wales, the West Midlands had the joint highest unemployment rate estimate in the UK.

Compared with the same period last year - March to May 2022 - the region 's employment rate has risen by 0.5 per cent and economic inactivity has decreased by one per cent, but unemployment increased by 0.6 per cent.

Emily Stubbs (pictured), senior policy and projects manager at Greater Birmingham Chambers of Commerce, said: “These figures show a concerning increase in the already-high rate of unemployment in the West Midlands over the last year.

“Persistent tightness in the national labour market is being compounded by long-standing skills challenges in the region. Meanwhile, stubborn inflation, rising interest rates and wage demands are turning up the heat on employers, many of whom remain unable to fill vacancies and operate at full capacity.

“Urgent government intervention is needed to ensure that talented individuals have the skills needed to access employment opportunities in the West Midlands, and to establish the right conditions for employers to confidently invest in up and re-skilling their people.

“To facilitate this, Greater Birmingham Chambers of Commerce are currently working with other regional Chambers and a number of key stakeholders to develop a Local Skills Improvement Plan for the West Midlands. ”

Nationally, unemployment increased by 0.2 per cent during March to May, while the employment rate increased by 0.1 per cent.

Vacancies also fell for the12th consecutive quarter between April and June - decreasing by 85,000 - but remain 232,000 above the pre-pandemic levels of January to March 2020.

Emily Stubbs added: “In the short term, Government must also look to ease pressures with a pragmatic approach to immigration policy that recognises the long-standing, acute challenges many firms are facing accessing talent. ”

“The findings of our latest Quarterly Business Report will be published next week, revealing further insights as to the recruitment difficulties local firms are currently encountering. Expert panellists will discuss how the city-region can leverage the legacy benefits of the Birmingham 2022 Commonwealth Games to address some of these ongoing challenges. ”

Click here to find out more and register to attend the launch of the Quarterly Business Report for Q2 2023.