West Midlands labour market remains fragile - Chamber

The West Midlands job market remains fragile despite a small decrease in the unemployment rate over the past three months, business leaders said today.

According to the Office for National Statistics (ONS), unemployment fell by 0.3 per cent from December to February.

But employment also declined by 0.3 per cent over the same period, with firms remaining cautious about hiring.

Compared to the same period a year prior, the region’s employment rate has fallen by 0.2 percentage points, while the unemployment rate has increased by 1.1 per cent.

Meanwhile, the estimated number of vacancies in the UK decreased to the lowest level since 2021.

Early estimates for the January to March 2026 period suggest a decrease of 29,000 (3.9 per cent), to 711,000, compared with October to December 2025.

Excluding bonuses, wage growth fell to 3.6 per cent year on year in the three months to February, down from 3.8 per cent in January and the lowest level since November 2020.

Including bonuses, wages increased by 3.8 per cent, slowing from a rise of 4.1 per cent in the previous quarter.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “April’s labour market figures continue to underline the fragility of the labour market in the West Midlands.

“While regional unemployment has edged down slightly over the last three months, it remains above that seen a year ago, as employment can be seen drifting in the wrong direction and vacancies continue to fall, signalling that many employers remain cautious about hiring and investment.

“Against a backdrop of sustained cost pressures and heightened global uncertainty, including ongoing geopolitical tensions, businesses are telling us they need greater stability and clarity to plan for growth.

“Policy must focus on backing employer confidence - through proportionate regulation, targeted action on skills and inactivity, and measures that ease pressure on operating costs.

“Businesses and policymakers are invited to explore these issues in more detail at the launch of our Q1 2026 Quarterly Business Report next week, which will focus on investment trends across Greater Birmingham.

“We would also strongly encourage firms to take a few minutes to complete our ongoing survey examining the impact of the Iran conflict on local businesses, so that we can ensure these concerns are clearly represented in our discussions with regional stakeholders and government.”

Attend the upcoming launch of the Q1 Quarterly Business Report.

Complete the Chambers’ survey on the impact of the Iran war.