Sharp rise in unemployment 'deeply concerning ' - Chamber

Business leaders today said the rise in unemployment in the West Midlands is “deeply concerning ” as the pandemic continues to hamper the labour market.

According to new figures from the Office of National Statistics (ONS), unemployment in the West Midlands increased by 1.2 per cent between October and December, well above the national figures of an increase of 0.4 per cent.

Employment in the region fell by 0.5 per cent, compared to 0.3 per cent nationally.

However, workers in the region did receive a pay jump. In the same three-month period, regular pay, after inflation, was up 3.3 per cent on the previous year.

Total pay was up 3.8 per cent, helped by strong bonuses.

But job vacancies slumped by 26 per cent between November 2020 and January 2021, compared to the previous year.

In the West Midlands, there were more than 1.1 million employees were listed on company payrolls in January, up nearly 7,000 compared to December. However, this was still 25,000 less compared to last February.

Paul Faulkner (pictured), chief executive of Greater Birmingham Chambers of Commerce (GBCC) said that coronavirus restrictions have put otherwise viable businesses into “desperate situations ”, with many struggling to stay afloat and retain jobs.

He said: “This sharp increase in regional unemployment is undoubtedly concerning. While the furlough scheme continues to limit job losses, these figures show that the ongoing pandemic has nonetheless significantly impacted the labour market, and especially so here in the West Midlands.

“The pandemic and subsequent restrictions have put many otherwise viable businesses into desperate situations, struggling to stay afloat and retain jobs with little to no income for almost a full year now.

“Despite the optimism generated by the government 's roadmap that was announced yesterday, many sectors now know that they will still be unable to open and trade fully for a number of additional months. With all eyes now on the Budget next week, we implore the Chancellor to extend the various support schemes, including furlough and business rates relief, through the summer at least in order to help protect jobs and power economic recovery.

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Saira Demmer, chief executive of SF Recruitment, suggested that although the rate of growth in unemployment has slowed, many industries continue to feel pressure from the pandemic and face ongoing job losses.

She said: “The rate of growth in unemployment has slowed significantly since last quarter suggesting that the worst may be behind us. Most major restructures, redundancy programmes and other job losses took place last year, but industries such as hospitality and leisure that continue to be under pressure into 2021 are still seeing a small but ongoing level of job losses.

“Employers are responding well to the need to protect and engage their existing talent and the 3.3% increase in average pay is a very positive sign for workers. ”