Region’s higher than average inactivity rate a concern – Chamber
Business leaders today called on government to remove barriers for people who want to work, after new labour market statistics revealed the West Midlands has a higher-than-average proportion of economically inactive residents.
According to the Office for National Statistics (ONS), the West Midlands unemployment and inactivity rates rose marginally by 0.1 and 0.2 per cent to 3.8 per cent and 22.5 per cent respectively between October to December 2023, compared to the previous three-month period.
And unemployment decreased by 0.4 per cent to 74.4 per cent.
However, compared to the same period in 2022, the employment rate has increased by 0.2 per cent and unemployment has declined by 0.7 per cent.
But the inactivity rate - the proportion of 16 to 64-year-olds who are economically inactive – was up 0.3 per cent on the year.
UK job vacancies decreased by 26,000 to 932,000 in the November 2023 to January 2024, with numbers falling for the 19th consecutive quarter.
Annual growth in regular earnings (excluding bonuses) was 6.2 per cent in October to December 2023, while annual growth in employees' average total earnings (including bonuses) was 5.8 per cent in October to December 2023.
In real terms - adjusted for inflation using the Consumer Prices Index – annual growth for total pay rose on the year by 1.4 per cent, while growth in regular pay was 1.8 per cent in October to December 2023.
Emily Stubbs (pictured), senior policy and projects manager at Greater Birmingham Chambers of Commerce, said: “Despite an encouraging move in the right direction over the past year, the West Midlands continues to struggle with one of the highest unemployment rates in the country –- with many local residents unable to access meaningful employment opportunities.
“The region also has a higher than average proportion of economically inactive residents, which rose over the year.
“The Chambers are calling on government to do more to remove barriers for those who want to work, including improving access to affordable childcare, health support and training.
“Our upcoming Growth Through People campaign will also share best practice advice and guidance for employers looking to make their jobs more accessible to a broader talent pool and help prevent people from leaving the workforce unnecessarily.
“While a continued decline in vacancies might suggest a softening in the labour market, the Chamber’s latest Quarterly Business Report – launched last week – found that recruitment is not getting easier for local businesses.
“At the end of last year, almost three quarters of Greater Birmingham firms attempting to recruit experienced difficulties doing so. This is one of the highest figures seen since 2022.
“Surveying is now open for the Q1 2024 Quarterly Business Report, and the Chambers are seeking input from employers to continue to inform key policy decision making at both local and national levels.”
Complete the Quarterly Business Report survey and enter into a prize draw to win a meal for two and a bottle of wine at Smoke+Ash, Edgbaston (terms and conditions apply).
