Unemployment and skills continue to hit region
The unemployment rate in the West Midlands, although in decline, remains notably higher than the national average, despite vacancies across the country outnumbering unemployed individuals, new figures reveal this morning.
Figures from the Office for National Statistics (ONS) show that of the 60 per cent of employers in the region who sought to recruit in Q2 2022, 76 per cent - a record high - experienced difficulties doing so. The West Midlands, like much of the country, continues to struggle with skills gaps.
In the period March-May, the West Midlands employment rate in the period March to May 2022 fell by 0.4 per cent to 75.1 per cent. The unemployment rate fell by 0.7 per cent to 4.4 per cent and the economic inactivity rate rose by 0.8 per cent to 21.3 per cent.
Nationally, from March to May, the employment rate rose by 0.4 per cent to 75.9 per cent, the unemployment rate decreased slightly, by 0.1 per cent to 3.8 per cent and the economic inactivity rate fell by 0.4 per cent to 21.1 per cent.
Compared with the same period last year, most regions of the UK saw an increase in the employment rate and the West Midlands experienced an increase of 1.0 per cent.
Early estimates from PAYE data suggest that between May and June 2022, the number of payrolled employees in the UK continued to increase in all regions.
Growth in average total pay (including bonuses) was 6.2 per cent and growth in regular pay (excluding bonuses) was 4.3 per cent among employees in March to May 2022.
In real terms (adjusted for inflation) during the period, growth in total and regular pay both fell on the year, at 0.9 per cent for total pay and 2.8 per cent for regular pay; this was a record fall for regular pay.
The number of job vacancies in April to June 2022 was 1,294,000; this was a small increase of 6,900 from the previous quarter and an increase of 498,400 from before the coronavirus (COVID-19) pandemic in January to March 2020.
In the same period the quarterly rate of growth continued to slow down, falling for the 11th consecutive period to 0.5 per cent.
In March to May, the ratio of unemployed people per vacancy remained at 1.0 for the fourth consecutive period, with the number of vacancies slightly higher than the number of unemployed people.
Emily Stubbs, senior policy and projects manager at the Chamber, said: “With the Commonwealth Games on the horizon, we must not lose sight of the fact that many talented residents remain unable to access employment opportunities in the region.
“Though in decline, the unemployment rate in the West Midlands remains notably higher than the national average, despite vacancies across the country outnumbering unemployed individuals.
“Of the 60 per cent of employers who sought to recruit in Q2 2022, 76 per cent - a record high - experienced difficulties doing so. The West Midlands, like much of the country, continues to struggle with skills gaps.
“The Chamber 's Future in Technology campaign, launching today, aims to support local businesses in maximising opportunities related to technological development and digital access.
“West Midlands Combined Authority surveying suggests that 49 per cent of employers in Greater Birmingham anticipate that digital skills will need enhancing in the future.
“In response to this particular gap, the second week of the Future in Technology campaign will focus on digital skills, and the support available for local businesses looking to boost the digital skills of their workforce.
“The Chamber is also calling on the government, and the next Prime Minister, to consider measures to support businesses, alongside individuals, struggling with the current levels of inflation impacting pay packets.
“The Chamber 's latest Quarterly Business Report showed that inflation continued to be a key source of concern for businesses across Greater Birmingham in Q2 2022, with 41 per cent of firms reporting they were more concerned about this than they were three months ago. This figure is the highest on record. ”
Saira Demmer (pictured), chief executive of Chamber patron SF Recruitment, said: "The employment market is still going strong as demand from employers continues to drive up wages and the number of payrolled employees increases.
"However, the 0.8 per cent increase in the economic inactivity rate is worrying as it suggests that employers efforts to attract people back into the workplace are not having the desired impact.
"With half a million people already missing from the workforce nationwide, the economy cannot afford to lose many more workers."
Click here to read the Chambers ' Q2 2022 Quarterly Business Report, launched this morning at Birmingham City University.