Job figures: Region facing persistent challenges - Chamber

The West Midlands labour market continues to face “persistent challenges ” after new figures revealed a downturn in employment and a rise in unemployment, business leaders said today.

According to the Office for National Statistics (ONS), the region 's employment rate dropped by 0.8 per cent over the three-month period, while unemployment crept up by 0.1 per cent.

Economic inactivity also rose by 0.8 per cent over the same period.

Nationally, the unemployment rate remained largely unchanged, although the inactivity rate rose by 0.2 per cent -driven by a record increase in the number of people who are long-term sick.

Wage growth across the UK picked up by more than expected over the three-month period, with average weekly earnings - excluding bonus payments - rising at an annual rate of 5.7 per cent.

That was up from the 5.4 per cent figure last month.

However, when adjusted for inflation over the year, total pay fell by 2.6 per cent and regular pay fell by 2.7 per cent.

Emily Stubbs (pictured), senior policy and projects manager at Greater Birmingham Chambers of Commerce, said: “As the UK economy heads into a predicted recession, persistent challenges in the local labour market and subsequent recruitment difficulties are restricting output, contributing to inflationary pressures and preventing talented individuals from being able to access opportunities.

“Ensuring that businesses can access the talent they need will be a critical factor in ensuring survival and recovery from even tougher economic times ahead.

“The government must work with employers to encourage skilled individuals to stay in the labour market and remove barriers to work through flexible workplaces, rapid re-training opportunities and better access to childcare and public transport.

“Crucially, firms also need support to invest further in the training and upskilling of everyone in the workplace so that we are ready to grasp new opportunities for growth.

“It is absolutely critical that the Chancellor implements measures to address these labour market challenges in Thursday 's Autumn Statement.

“We encourage readers to complete the Chamber 's latest Quarterly Business Report survey to ensure that their voice is heard by policy makers both locally and nationally during these turbulent times. ”

Click here to complete the Quarterly Business Report survey.