Employment on the rise but recruitment still an issue - Chamber

West Midlands firms are still struggling to recruit the required skilled talent despite the latest job figures showing encouraging signs for the region, business leaders said today.

And the recruitment issues are reaching “boiling point ”, a leading recruiter has warned.

The West Midlands employment rate increased by 0.2 per cent in the February to April period to 75.9 per cent - on par with the rest of England and above the UK average.

The region - alongside the South West - enjoyed the largest year-on-year increase of any area in the country with an increase of 2.7 per cent.

In a further boost, the West Midlands unemployment rate also fell by 1.5 per cent compared to the same period last year (February to April), as well as decreasing by 0.5 per cent in the last quarter.

However, the number of job vacancies nationally hit a record high of 1.3million.

There has also been a 6.8 per cent growth in average total pay and 4.2 per cent growth in regular pay.

In real terms (adjusted for inflation), growth in total pay was 0.4 per cent.

However, regular pay fell on the year by 2.2 per cent.

Strong bonus payments have kept recent real total pay growth positive.

Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said: “The significant increase in the West Midlands employment rate and decline in the regional unemployment rate over the past year is encouraging to see.

“Nevertheless, the region continues to struggle with skills gaps exacerbated by the Covid-19 pandemic.

“While many West Midlands residents are unable to access meaningful employment opportunities in the region, local businesses are experiencing difficulties recruiting the skilled talent they need to thrive and grow.

“The opportunities for businesses associated with investment in upskilling local talent will be among key themes discussed by an expert panel at the upcoming launch of the Chamber 's Quarterly Business Report for Q2 2022.

“The Chambers are also working closely with Birmingham Education Partnership to offer individuals in the business community the opportunity to volunteer as an enterprise adviser, and be partnered with a secondary school or college to support them in the development and implementation of their careers strategies, ensuring young people in the region are prepared and inspired to make the most of local opportunities. ”

Saira Demmer, chief executive of recruitment firm and Chamber patron SF Recruitment, warned the talent shortage was reaching boiling point.

She said: “The labour market continues to tighten and the ongoing structural gap between vacancies and employees to fill them is at boiling point.

“With an almost seven per cent increase in pay so far this last year, employers are running out of options and may well start turning to different solutions to solve their workforce challenges.

“We expect to see wages growth slow in the second half of 2022 as a result. ”

To register to attend the launch of the GBCC 's Quarterly Business Report for Q2 2022 on 19 July, click here

To find out more about volunteering to become an enterprise advisor to a Birmingham school or college, get in touch with Emily at [email protected]