West Midlands labour market shows growth despite volatile hiring conditions – Chamber

The West Midlands job market is continuing to feel political uncertainty and geopolitical conflict despite the growth in labour market, business leaders in Greater Birmingham said today.

According to the Office for National Statistics (ONS), unemployment in the West Midlands fell by 0.7 percentage points to 5.4 per cent in the three months to March 2026, compared with the previous quarter.

The region’s employment rate increased by 0.7 percentage points to 73.8 per cent, while economic inactivity stood at 21.9 per cent.

Despite the quarterly improvement, unemployment remains 0.9 percentage points higher than a year ago.

The national unemployment rate rose slightly to 5 per cent in the three months to March from 4.9 per cent in the three months to February.

Meanwhile, estimates from the ONS suggest the number of job openings fell by 28,000, to 705,000 between February and April, its lowest level since April 2021.

The ONS also said that wage growth was 3.4 per cent year on year in the three months to March, down from 3.6 per cent in February. 

Ruth Fleet (pictured), senior policy advisor of Greater Birmingham Chambers of Commerce, said: “The West Midlands continues to see a lot of volatility and although we are seeing signs of positive growth, firms are still feeling the impact of political uncertainty and geopolitical conflict.

“Businesses need certainty in which to operate, as well as a transparent and strategic approach to ease the multiple cost burdens they are currently facing, to give them the confidence to hire.”

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