Job market 'very healthy ' despite fluctuations - expert

Business leaders said jobs figures remain “very healthy ” in the West Midlands despite a fall in the employment rate and an increase in unemployment according to data released today.

Between April and June, the West Midlands employment rate decreased by 1.3 per cent (compared to January-March 2022) to 74.9 per cent (just above the 74.8 per cent seen in Jan-March 2020).

The unemployment rate rose by 0.1 per cent to 4.6 per cent and the economic inactivity rate increased by 1.0 per cent to 21.3 per cent.

Compared with the same period last year (April-June 2021), the West Midlands employment rate rose by 0.3 per cent, unemployment fell by 0.4 per cent and inactivity declined by 0.1 per cent.

When adjusted for inflation, total pay over the year fell by 2.5 per cent and regular pay fell by a record 3.0 per cent.

Emily Stubbs, senior policy and projects manager at the Chambers said: “Though the local labour market is beginning to return to pre-Covid levels, we must aspire to support all local residents seeking work into meaningful employment and where possible, ensure that we are retaining skilled talent within the labour market.

“The Chambers are committed to working with educators and the local business community to ensure that talented individuals are enabled to access employment opportunities and minimise the skills gaps constraining business growth.

“This begins with good careers education. As such, we are working with Birmingham Careers Hub to encourage members of the local business community to volunteer as Enterprise Advisors to local secondary schools and colleges, to support the development and implementation of effective careers strategies, ensuring all students are prepared and inspired for the fast-changing world of work.

“While regular pay, excluding bonuses for those in employment appears to be increasing at the fastest rate on record, adjusted for current levels of inflation, the real value of pay fell at the sharpest rate ever recorded between April and June 2022.

“The Chambers are calling on the Government and the next Prime Minister to act decisively and offer fiscal support to address the significant rise in both the cost of living - expected to increase further throughout the year - and the cost of doing business. This ought to begin with immediate measures such as cutting up front costs for businesses, expanding the Shortage Occupation List and removing VAT from energy bills. ”

Saira Demmer (pictured), chief executive of Chamber patron SF Recruitment, said: “Despite some regional fluctuations, the jobs market remains very healthy as it continues to track above pre-pandemic levels.

“Pay corrections have been largely completed for this year with businesses having little wiggle room left and so we expect to see a slowdown in wages in the second half of 2022.

“However, demand for talent and open vacancies remains high and is expected to continue in this vein as business investment remains resilient in the face of rising costs. ”

Growth in employees' average total pay (including bonuses) was 5.1 per cent and growth in regular pay (excluding bonuses) was 4.7 per cent in April to June 2022.