Unemployment rate rises as firms feel pressure - Chamber
Business leaders in Greater Birmingham are calling on government to act decisively to ease labour market pressures after new figures revealed the West Midlands has the highest unemployment rate of any UK region.
Data released today by the Office for National Statistics (ONS) said unemployment in the West Midlands increased by 0.7 per cent from the previous quarter.
It means that, at 5.1 per cent, the region had the highest unemployment rate estimate in the UK for the period to March 2023, with the national average at 3.9 per cent and the joint lowest - the South West and Northern Ireland - at 2.5 per cent.
The West Midlands employment rate also fell by 0.4 per cent, while the economic activity rate decreased slightly by 0.1 per cent.
Nationally, job vacancies fell by around 55,000 during the February to April 2023 period, while private sector pay grew at its highest rate (seven per cent) since August to October 2003.
Raj Kandola (pictured), director of External Affairs at Greater Birmingham Chambers of Commerce, said: “This morning 's ONS figures revealed a mixed picture as the unemployment rate ticked upwards both regionally and nationally with the challenging economic landscape continuing to hamper businesses in their attempts to hire staff.
“It 's likely that rising interest rates are weighing heavily on demand as vacancies also fell across the majority of sectors this quarter - any minor uplift in the overall employment rate is likely to have been driven by a fall in the economic inactivity rate as more people are now looking for work compared to the end of last year.
“Here in the West Midlands, the unemployment rate remains the highest of any region in the country - a trend echoed in our own research as data from our last Quarterly Business Report highlighting the severe pressures local firms are facing in trying to add to their headcount.
“With the continued squeeze on pay packets, the Government will need to show its ability to act decisively in a bid to drive economic growth and ease labour market pressures - broadening access to the shortage occupation list would be a sensible start. ”
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