Latest labour market data paints a concerning picture – Chamber
Business leaders have called on the Government to take action in tomorrow’s Comprehensive Spending Review – as new labour market figures paint a “concerning picture” for West Midlands firms.
Data released today by the Office for National Statistics (ONS) revealed a worrying increase in unemployment (0.7 per cent), as well as a decline in employment (1.8 per cent) across the region during the February to April period.
Economic activity also increased by 1.5 per cent during the same three-month spell.
Nationally, employment rose by 0.1 per cent, while there was a 0.2 per cent increase in unemployment.
Vacancies across the UK fell for a 35th consecutive quarter – decreasing by 63,000 to 736,000 in the March to May 2025 period.
The ONS Labour Force Survey data was the first to cover April's rises in employer national insurance contributions and the national living wage.
Greater Birmingham Chambers of Commerce say the Government must listen to the voices of business community regarding the impact of new legislation.
Head of policy Emily Stubbs (pictured) said: “These figures highlight stark differences between labour market trends regionally and nationally.
"While the ONS caveat that an increased amount of volatility remains in this dataset, above average and rising unemployment, a potentially significant decline in employment and still-rising economic inactivity in the West Midlands paint a concerning picture.
"Surveying by the ONS also reflects warnings which the Greater Birmingham Chambers of Commerce, British Chambers of Commerce and others raised months ago about increases in the cost of employment.
"Amid mounting cost pressures elsewhere, changes to employer National Insurance Contributions have forced businesses to cut back on recruitment plans, and in some cases left firms unable to replace workers who have left.
"This week's Comprehensive Spending review presents a critical opportunity for the Government to take action and meaningfully invest in the health and skills systems, reducing barriers to work and ensuring that people have the necessary skills to access meaningful employment.
"Saddling businesses with further costs by enacting the proposed employment rights bill in its current guise will only pose an additional threat to business investment, stifling employment opportunities.
“We also implore the government to make further amendments to this legislation in light of feedback from the business community.”
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