Job figures climb but region 's unemployment remains high
Increased employment, wages and job vacancies indicate strong recovery in the labour market in the West Midlands, but the region 's unemployment rate still remains high, business leaders have said today.
According to the latest figures released by the Office for National Statistics (ONS), between March and May 2021, the employment rate in the West Midlands rose by 0.8 per cent to 74 per cent, compared to the previous three month period.
The unemployment rate fell by 0.2 per cent to 5.7 per cent and the inactivity rate fell by 0.9 per cent to 21.4 per cent.
Nationally, compared to December 2020 to February 2021, the employment rate increased slightly by 0.1 per cent to 74.7 per cent, the unemployment rate decreased by 0.3 per cent to 4.8 per cent and the inactivity rate increased by 0.1 per cent to 21.4 per cent.
Average annual pay after inflation between March to May 2021 grew by 5.6 per cent, including bonuses, and 4.9 per cent, excluding bonuses.
Job vacancies topped pre-pandemic levels between March and May, with 862,000 placements available. Sectors such as arts and entertainment and accommodation and food services activities have seen strong rises in vacancies.
Although vacancies are plentiful within the job market, Emily Stubbs (pictured), policy and projects manager at Greater Birmingham Chambers of Commerce, said that many employers are still struggling to recruit staff.
She said: “Whilst it 's encouraging to see strong signs of recovery in the West Midlands labour market, the region 's unemployment rate remains significantly above that of the country as a whole.
“Meanwhile, our latest Quarterly Business Report revealed that just over half of the Greater Birmingham businesses looking to recruit new staff are facing difficulties doing so.
“In many sectors, these can be attributed to a combination of Brexit, the ongoing pandemic, and long-standing skills gaps across the region.
“The Chamber is committed to working with businesses and stakeholders to alleviate these recruitment difficulties. In upcoming webinars, we will be speaking to some of these stakeholders about how employers can make the most of key, funded initiatives to enable West Midlands residents to access meaningful employment opportunities. ”
Saira Demmer, chief executive of SF Recruitment, added that wage inflation and high levels of unfilled vacancies were likely to continue through to the end of the year.
She said: “As the worst of the pandemic is behind us, we are now seeing of high levels of unfilled vacancies and wage inflation.
“Both of these trends are likely to continue through to the end of 2021 as individuals and businesses continue to adjust to their post pandemic lives and models. ”
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