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Record number in work in West Midlands

The number in work in the West Midlands hit a new record high of 2.79 million in the three months to June, but numbers claiming unemployment-related benefits surged in the region last month.

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The number out of work in the region has fallen

There were 133,000 unemployed in the West Midlands – an unemployment rate of 4.5 per cent of the working population – for April to June, down 6,000 on the previous quarter and a fall of 31,000 on the year.

Nationally unemployment was down 65,000 to 1.36m – the lowest total since February 1975 – figures from the Office for National Statistics showed. The national rate was four per cent.

The West Midlands saw the largest increase in the employment rate in the country at 1.2 per cent and its employment rate is now 74.9 per cent, also a record high.

The claimant count, which includes people on Jobseeker's Allowance and the unemployment element of Universal Credit, increased by 6,200 last month to 906,100, almost 108,000 more than a year ago. For the West Midlands it was up by 875 in July to 101,215 – 2.8 per cent of the working population.

Wolverhampton's total rose by 175 to 8,130 (five per cent) with Dudley up by 85 to 7,430 (3.8 per cent).

There were falls of 60 in Sandwell to 7,440 (3.7 per cent) and 30 in Walsall to 5,050 (three per cent).

Staffordshire had a fall of 120 to 6,855 (1.3 per cent) with Stafford down 60 to 810 (one per cent), Cannock Chase falling 45 to 825 (1.3 per cent),South Staffordshire reducing by 25 to 930 (1.4 per cent) and Lichfield having five fewer claimants at 785.

For Wyre Forest, which includes Kidderminster, the claimant count was up by 25 to 985 (1.7 per cent).

There has also been a record fall in the number of EU nationals working in the UK.

There were 2.28 million working in this country in the quarter to June, 86,000 fewer than a year earlier, the largest annual decrease since records began in 1997.

Across the UK the number of people in work continued to increase – up by 42,000 to 32.39m

Job vacancies increased by 20,000 to a record high of 829,000, while average earnings increased by 2.4 per cent in the year to June.

The number of workers on zero-hours contracts fell by 104,000 over the past year to 780,000, the first substantial fall since the ONS started tracking the figures in 2000.

The number of people classed as economically inactive, including students, those on long-term sick leave, taken early retirement or who have given up looking for work, increased by 77,000 to 8.7 million in the latest quarter, giving a rate of 21.2 per cent.

Secretary of State for Work and Pensions Esther McVey said: "With the unemployment rate falling further to just four per cent, and youth unemployment down over 45 per cent since 2010, school leavers this week can look forward to a growing jobs market, improving the prospects for their future careers.

"In fact the UK's vibrant jobs market is benefitting people across the board. Record rates of ethnic minority people in work also show that more families across our society are benefitting from the security of a job, with wages also on the increase.

"We have some of the most creative, innovative and hard-working young people in the world and this summer I've been urging them to take on a summer job, gaining 'soft skills' - or as I call them, essential skills - for their future careers."

Unions highlighted the fall in the number of workers on zero-hours contracts.

TUC general secretary Frances O'Grady said: "Bosses are finally getting the message that zero-hours contracts are legalised exploitation.

"Ministers should ban zero-hours contracts once and for all. Britain's long-awaited wages recovery has yet to materialise. Pay growth is anaemic at best.

"The government is asleep at the wheel as family budgets are squeezed."

Matthew Percival of the Confederation of Briish Industry said: "Continuing job creation shows that flexibility in the labour market is a key strength of the UK economy. However, these figures show that the size of the UK workforce is shrinking at the same time as vacancies for skills and labour grow."