Unemployment rises again as firms face ‘exorbitant’ pressures – Chamber
The West Midlands continues to have the highest unemployment rate in the UK – as businesses face a range of “exorbitant” pressures.
In response to this morning’s Office for National Statistics (ONS) date, Greater Birmingham Chamber of Commerce (GBCC) called on the Chancellor to use the Autumn Budget as “an opportunity to ease cost pressures and help businesses attract, develop, and retain talent and skills”.
Although the West Midlands employment rate remained stable at 73.2 per cent during the June to August period, the unemployment rate rose to 6.2 per cent – the highest of any UK region.
Nationally, over the same period, employment declined by 0.2 per cent to 75.1 per cent, unemployment rose by 0.2 per cent to 4.8 per cent and economic inactivity remained unchanged at 21 per cent.
Compared to the same period last year, employment in the West Midlands has declined by 0.6 per cent, while unemployment has climbed by 1.9 per cent.
Meanwhile, job vacancies across the UK continue to fall – decreasing by 9,000 (1.3 per cent) on the quarter.
It is the 39th consecutive period where vacancies have dropped.
Annual growth in employees' average earnings in Great Britain for regular earnings (excluding bonuses) was 4.7 per cent, and for total earnings (including bonuses) was 5.0 per cent in June to August.
Annual growth in real terms - adjusted for inflation using the Consumer Prices Index - was 0.6 per cent for regular pay and 0.8 per cent for total pay, in June to August 2025.
Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “For a second consecutive month, the West Midlands has the highest unemployment rate in the country.
“And while the ONS caution against comparisons with volatile estimates throughout 2024, it appears unemployment in the region has risen sharply over the past year, at a rate well above the national average.
“Unfortunately, taken together with data from other regions across the UK, these figures are unlikely to encourage the Bank of England to cut interest rates further before the end of the year.
“Our latest Quarterly Business Report shows that labour costs, exacerbated by national insurance hikes earlier this year, remain the biggest cost pressure for Greater Birmingham firms
“The prospect of the forthcoming Employment Rights Bill, coupled with speculation about additional tax rises in the Autumn Budget, are only adding to the exorbitant pressures facing local businesses.
“Across the West Midlands, we will continue to collaborate with stakeholders to understand why these challenges are being felt so strongly in our region and to provide support to local firms.
“At a national level, it is vital that the Chancellor uses the Autumn Budget as an opportunity to ease cost pressures and help businesses attract, develop, and retain the talent and skills essential for driving economic growth – rather than raising taxes further.”
Register to attend the launch of the GBCC's Q3 Quarterly Business Report.
