Labour market challenges limiting business growth - Chamber

The West Midlands had the highest unemployment rate of any region in the UK during the three months to October, new figures reveal today.

According to the Office for National Statistics, unemployment in the region increased by 0.3 per cent, while employment fell by 1.7 per cent during the same period.

Nationally, job vacancies remain at a record high despite a decrease of 65,000 from September to November - a fifth consecutive quarterly fall.

Growth in average pay (including bonuses) and regular pay (excluding bonuses) remained at 6.1 per cent from August to October.

But, when adjusted for inflation, both total and regular by fell by 2.7 per cent.

Emily Stubbs (pictured), senior policy and projects manager at Greater Birmingham Chambers of Commerce, said: “As we head towards a recession, ongoing labour market challenges are constricting business growth.

“Today 's figures represent a continuation of the extremely tight labour market conditions that businesses are operating in across the country.

“Meanwhile, a greater proportion of residents in our region than anywhere else in the UK are unable to access employment opportunities.

“A mismatch in the skills required by employers and those available in the local labour market is playing a critical role in the complex challenges holding back economic growth in the region. ”

Greater Birmingham Chambers, together with Coventry and Warwickshire and Black Country Chambers of Commerce, are working with partners and stakeholders across the region to deliver a Local Skills Improvement Plan for the West Midlands.

Emily Stubbs added: “The LSIP seeks to support the alignment of skills provision with, in particular, the green and digital skills requirements of West Midlands employers.

“We encourage organisations experiencing recruitment challenges across the region to get involved through online focus groups. ”

Employers in any of the following sectors - or their supply chains - are encouraged to contribute to this research through online focus groups, taking place in January.

• Manufacturing of electric light vehicles and associated battery storage devices and Aerospace (including manufacturing alternative fuel)
• Logistics and distribution
• Health Tech and med tech
• Professional and financial services and supply chain
• Modern and low carbon utility and manufacturing of future housing

Please contact Kuran Singh, policy advisor at the Chamber, to contribute.