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Employment at record level but more out of work

UK employment surged to another record high in the three months to January, but unemployment also rose as fewer people became economically inactive.

Published
There were 133,000 unemployed in the West Midlands

Wage growth also accelerated during the period, increasing to 3.1 per cent growth from 2.9 per cent in December.

The number of people in work increased by 183,000 to 32.99 million in the quarter, the Office for National Statistics said.

Unemployment increased by 5,000 to 1.34 million in the three months. For the West Midlands it was up 1,000 to 133,000 – an unemployment rate of 4.5 per cent.

Numbers in work in the region were up 5,000 to 2,827,000 with the employment rate at 75.2per cent.

Analysts had forecast that national employment would increase by 143,000 in January.

David Freeman, ONS head of labour market statistics, said: "Today's figures show continuing record employment but also a slight rise in unemployment on the year _ for the first time since early summer 2012.

"This is because we also see a record low rate for people neither working nor looking for work.

"Meanwhile, vacancies have continued to rise after recent falls, with more now than at any time in the last six months."

The numbers claiming unemployment benefits, including Universal Credit, in the West Midlands last month were up 3,590 to 142,260 – 3.9 per cent of the working population.

Wolverhampton saw the biggest rise in the Black Country – up 380 to 10,140 (6.2 per cent) – closely followed by Sandwell with a rise of 375 to 10,490 (5.1 per cent). Walsall was up 305 to 8,315 (4.8 per cent) and Dudley increased by 235 to 8,445 (4.4 per cent).

For Staffordshire there was an increase of 535 to 11,960 – a rate of 2.2 per cent. Cannock Chase was up 90 to 1,660 (2.6 per cent), Stafford saw an increase of 55 to 1,600 (1.9 per cent), Lichfield rose by 50 to 1,295 (2.1 per cent) and South Staffordshire had a rise of 30 to 1,315 (1.9 per cent).

Wyre Forest, including Kidderminster, was up 20 to 1,585 (2.7 per cent).

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