Labour market figures demonstrate resilience among West Midlands firms – Chamber

Positive shifts in the West Midlands employment and unemployment rates demonstrate resilience among businesses, business leaders said today.

But cost pressures and skills challenges are still impacting on hiring and investment, Greater Birmingham Chambers of Commerce warned.

New figures from the Office for National Statistics (ONS) reveal unemployment in the West Midlands fell by 0.5 per cent in the March to May 2026 period, while the employment rate increased by 0.2 per cent.

Unemployment has also decreased slightly year-on-year – falling by 0.3 per cent compared to the same three-month period in 2025.

The employment rate remains unchanged compared to the same period last year.

Meanwhile, average wage growth in the UK, excluding bonuses, rose by 3.4 per cent ​in the three months to May, matching the pace of increase in the three months to ​April, and the joint-lowest since October 2020.

The estimated number of vacancies in the UK decreased in the latest quarter – with early estimates suggesting a decrease of 7,000 (0.9 per cent) to 712,000, compared with the January to March period.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “The latest labour market figures point to a degree of resilience in the West Midlands, with employment and unemployment both moving in a positive direction.

“However, rising economic inactivity and falling vacancies suggest many businesses remain cautious about recruitment and investment.

“For business confidence to strengthen, firms need the new government to provide long-term economic stability, action to ease cost pressures and a continued focus on skills.

“Through our Local Skills Improvement Plans, we're bringing businesses and education providers together to help ensure training better reflects real job opportunities and employer needs.

“We're also committed to giving businesses the tools, knowledge and connections they need to grow, compete and thrive in an increasingly complex business environment.

“Our Business Growth Studio Conference this October will bring together expert insight, practical support and valuable networking opportunities to help firms achieve their growth ambitions and navigate an increasingly complex business environment.”

Find out more and register to attend the Business Growth Studio Conference 2026.