Labour market remains tight as skills shortage impedes productivity - Chamber
The West Midlands unemployment rate continued to rise between February and April, with firms still struggling to access skilled talent, business leaders said today.
Latest figures from the Office for National Statistics (ONS) revealed unemployment in the West Midlands increase by 0.3 per cent during the three-month period.
Alongside Wales, it has the joint highest rate of any UK region.
The region 's employment rate increased by 1.6 per cent over the same period, while the economic activity rate decreased by 2 per cent.
Nationally, the employment rate was 76 per cent, having increased by 0.2 per cent over the three-month period, while unemployment crept up by 0.1 per cent to 3.8 per cent.
Meanwhile, job vacancies in the UK fell for the 11th consecutive quarter - dropping by 79,000 - with the ONS 's survey respondents citing economic pressures as a factor in holding back on recruitment.
Greater Birmingham Chambers of Commerce said economic pressures and talent shortages continue to hamper businesses.
Emily Stubbs, senior policy and projects manager, at the GBCC, said: “It is disappointing to see the decline in employment and increase in unemployment in the West Midlands since last year.
“It has been an incredibly challenging year for businesses, with energy prices and broader inflationary pressures placing particular strain on many of the industrial strengths of the West Midlands, including manufacturing, hospitality and retail.
“Ongoing skills shortages also continue to impede productivity in the region. While vacancies have decreased since their peak in mid-2022, they remain significantly above pre-pandemic levels. This is reflective of the many local businesses still unable to access the skilled talent they require to fulfil existing orders and grow, as identified by the Chamber 's latest Quarterly Business Report.
“Urgent government intervention is needed to ensure that talented individuals have the skills needed to access these employment opportunities, and to better support employers to invest in up and re skilling workforces. To facilitate this, the Greater Birmingham Chambers of Commerce are currently working with other regional Chambers and a number of key stakeholders to develop a Local Skills Improvement Plan for the West Midlands.
“The Chamber 's upcoming Quarterly Business Report Briefing will provide additional insights into recruitment challenges across Greater Birmingham, as well as the economic legacy of the Birmingham 2022 Commonwealth Games, a year after the events took place. ”
Click here to find out more and register to attend the Q2 2023 Quarterly Business Report briefing.