Government must help ease labour market pressures - Chamber

The West Midlands faces the highest unemployment rate in the UK - prompting a call for urgent Government intervention to ease labour market pressures.

Latest regional statistics shows that in the three months to August 2022, the unemployment rate and economic inactivity rose by 0.3 per cent to 4.7 per cent and 21.6 per cent respectively.

The quarterly increase led to the West Midlands recording the highest unemployment rate estimate in the UK, with the South-West by comparison the lowest at 2.7 per cent.

Over the course of a year, the unemployment rate in the West Midlands remained unchanged, local unemployment fell slightly by 0.2 per cent and economic inactivity increased slightly by 0.1 per cent.

In June to August 2022, the number of unemployed people per vacancy nationally fell to a record low of 0.9 per cent, despite the number of vacancies falling on the quarter for the third consecutive period.

Emily Stubbs, senior policy and projects manager at the Greater Birmingham Chambers of Commerce said: “Today 's data reflects the impossibly tight labour market in which businesses are operating, even as the West Midlands faces the highest unemployment rate of any region in the UK.

“While many West Midlands residents remain unable to access local employment opportunities, demand for skilled labour is high, and labour market costs present yet another burden for businesses already struggling under the weight of cost pressures associated with global supply chain disruption, energy bills, uncontrolled inflation and rising interest rates.

“Intervention is needed urgently from Government to ease these labour market pressures. This must include the introduction of taxation mechanisms which help firms achieve a fast return on investment in skills and freeing up funding for modular, accredit short courses, ensuring that the skills system has the agility to respond quickly to the evolving needs of industry sectors.

“The Birmingham Economic Review, launching next week, will provide expert insights on the economic outlook for Greater Birmingham, including what the latest labour market data means for the city-region. ”