Job figures: Talent shortage restricting economic growth - Chamber

Birmingham business leaders have urged the Government to use tomorrow 's Budget to 'unlock talent ' and address ingrained skills shortages constricting business growth.

Greater Birmingham Chambers of Commerce issued the urgent eve of Budget plea as the latest UK labour market statistics reveal that unemployment is higher in the West Midlands and London than any other region in the UK.

Nationally, job vacancies fell by 51,000 in the quarter from December to February to 1,124,000.

The decline - for the eighth consecutive quarterly period - is blamed on uncertainties across a range of industries, with 'economic pressures ' blamed for blocking recruitment plans.

Emily Stubbs (pictured), senior policy and projects manager at the Chambers, said: “As businesses continue to grapple with inflation, rising interest rates and energy prices, ingrained challenges in accessing skilled talent are further constricting economic growth.

“The Chancellor 's budget tomorrow presents a critical opportunity for the government to address ongoing labour market challenges and unlock talent, by committing to making childcare more affordable, a full review of the Shortage Occupation List and reform of the Apprenticeship Levy to introduce more modular, short form courses. ”

Regional labour market statistics reveal that in November 2022 to January 2023, the West Midlands employment rate was 74 per cent, 0.3 per cent up on the previous three months. Regional unemployment stood at 4.5 per cent, a 0.4 per cent decrease.

The jobless rate was the UK 's joint highest with London, while the regional rate of economic inactivity was unchanged at 22.5 per cent.

Meanwhile, growth in average total pay including bonuses was 5.7 per cent from November to January while in real terms adjusted for inflation growth in total and regular pay excluding bonuses was 6.5 per cent among employees for the November to January quarter.

But growth in total and regular pay fell on the year in November 2022 to January 2023 by 3.2 per cent for total pay and by 2.4 per cent for regular pay, the largest fall since April 2009.

In advance of the Budget, Emily Stubbs added: “It 's also expected that the Chancellor will set out the details of a trailblazer devolution deal for the West Midlands and Greater Manchester Combined Authorities, allowing them unprecedented control over key budgets across areas including adult education.

“The Greater Birmingham Chambers of Commerce will continue to work collaboratively to connect local employers with opportunities to up- and re- skill existing and new employees and facilitate business growth. The West Midlands Local Skills Improvement Plan is a critical part of this, and a key opportunity to shape how public funding is spent on training to support local businesses.

“We 'd hugely value employers of all sizes and business sectors taking five minutes to complete our survey and contribute to this work. ”

Complete the West Midlands Local Skills Improvement Plan survey and help inform local skills provision.