Skills must remain focus as labour market cools – Chamber
Business leaders in Greater Birmingham today urged government to create the right conditions for businesses to invest in skills, in order to boost labour market conditions.
Figures released by the Office for National Statistics (ONS) this morning revealed a year-on-year increase of 0.6 per cent in the West Midlands employment rate, along with a 0.2 drop in unemployment. Economic inactivity in the January to March 2024 period also declined by 0.5 per cent compared to the same period last year.
However, the West Midlands still has the third highest unemployment rate of any UK region.
Nationally, vacancies fell by 26,000 in between February and April 2024 – a 22nd consecutive increase.
Annual growth in employees' average regular earnings (excluding bonuses) in Great Britain was 6.0 per cent in January to March 2024, and annual growth in total earnings (including bonuses) was 5.7 per cent.
Annual growth in real terms (adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH)) for regular pay was 2.0 per cent in January to March 2024, and for total pay was 1.7 per cent.
While the year-on-year improvement in employment and unemployment is welcomed, Greater Birmingham Chambers of Commerce said two-thirds of local businesses are still struggling to recruit the right talent.
Emily Stubbs (pictured), head of policy at the GBCC, said: “Compared to the same period last year, we’ve seen a welcome increase in employment and decrease in unemployment here in the West Midlands. However, unemployment remains the third highest of any region in the UK.
“Our most recent Quarterly Business Report found that in the first quarter of the year, recruitment difficulties began to ease for many Greater Birmingham firms.
“Nevertheless, almost two-thirds of local businesses continue to struggle to recruit the right talent and many West Midlands residents are unable to access meaningful job opportunities.
“Skills gaps, increased wage costs and broader price pressures continue to dampen business growth.
“Addressing these challenges, by removing barriers to work and reducing price pressures to enable business investment in skills, will be critical to reducing inflation, raising productivity and driving economic growth.”
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Read the Chamber’s Quarterly Business Report for Q1 2024.
