Unemployment falls again in the West Midlands

The number out of work in the region was 132,000 – down 2,000 on the three months to April and a drop of 35,000 from a year earlier. The unemployment rate is 4.4 per cent of the working population.

The number in employment in the West Midlands was 2.84 million – 60.2 per cent.

Nationally the rate of unemployment fell to 3.8 per cent at 1.28m.

The numbers claiming unemployment benefits, including Universal Credit, in the West Midlands were down 3,735 to 179,935 last month – a rate of 4.9 per cent.

Walsall saw a drop of 205 to 9,870 (5.7 per cent) with Dudley down 200 to 9,645 (five per cent). Wolverhampton had a fall of 130 to 12,255 (7.5 per cent) and Sandwell had 100 fewer claimants at 13,785.

Staffordshire was down 415 to 14,390 (2.7 per cent). Stafford dropped by 65 to 1,950 (2.3 per cent) with Cannock Chase down 55 to 1,955 (3.1 per cent). South Staffordshire's total was down 45 to 1,730 (2.6 per cent) and Lichfield dropped by 25 to 1,535 (2.5 per cent).

Wyre Forest, including Kidderminster, had 25 fewer claimants at 1,890 (3.2 per cent).

Britons saw their pay packets continue to lag heavily behind inflation despite a slight rise in earnings.

The Office for National Statistics revealed that regular wages excluding bonuses plunged by 3.7 per cent over the three months to May against the rate of consumer price index inflation, representing the biggest slump in more than 20 years.

Regular pay, excluding bonuses, rose slightly to 4.3 per cent for the period without taking inflation into account.

It comes after CPI inflation hit a 40-year record of 9.1 per cent in May and is expected to reach as high as 11 per cent later this year.

Bills have surged due to soaring energy and fuel bills amid the impact of the Ukraine war, but many have seen wages struggle to keep up.

The ONS added that total pay including bonuses lifted by 6.2 per cent for the three-month period, as workers in the financial sector drove a rise in bonuses.

Pressure on wages came as official figures showed that the number of UK workers on payrolls rose by 31,000 between May and June to 29.6 million.

Unemployment fell as job vacancies also continued to increase, with major staff shortages in industries such as hospitality.

There were 1,294,000 job vacancies over the three months to June, representing a 6,900 rise on the previous quarter.

Jobcentre Plus business development manager Cathy Taylor, based in Wolverhampton, said they were working with employers to match unemployed people to vacancies in the Black Country.

"Our skills coaches are working hard to help employers fill the record level of vacancies."

In Wolverhampton JLR and Lloyds banking Group are recruiting and Jobcentre Plus is also helping find people to work at the new HS2 West Midlands Hub.

ONS head of labour market and household statistics David Freeman said: "Today's figures continue to suggest a mixed picture for the labour market.

"The number of people in employment remains below pre-pandemic levels and, while the number of people neither working nor looking for a job is now falling, it remains well up on where it was before Covid-19 struck.

"With demand for labour clearly still very high, unemployment fell again, employment rose and there was another record low for redundancies.

"Following recent increases in inflation, pay is now clearly falling in real terms, both including and excluding bonuses."

Chancellor Nadhim Zahawi said: "I am acutely aware that rising prices are affecting how far people's hard-earned income goes, so we are providing help for households through cash grants and tax cuts.

"We're working alongside the Bank of England to bear down on inflation, providing support worth £37 billion this financial year for the cost of living, and investing in skills to help people get into work and progress."

Pat McFadden, Labour's shadow chief secretary to the Treasury and Wolverhampton South East MP, said: "Today's record fall in real wages comes after a decade where wages have stagnated for workers across the economy.

"This is because the Conservatives have failed to grow the economy, which has left people more exposed to inflation and the cost-of-living crisis.

"Labour's number one mission in government would be to grow our economy, making the country more prosperous and making its people better off."

Matthew Percival, CBI Director for People and Skills policy, said: “Persistent labour and skills shortages are hitting growth and business investment, exacerbating the cost-of-living crisis. Boosting business confidence to accelerate growth should be front of mind for the current and next Government.

“The Government should make the skills and immigration systems responsive to shortages by updating the Shortage Occupations List, the courses eligible for the Lifetime Skills Guarantee, and reforming the Apprenticeship Levy to unlock business investment in the full range of skills the economy needs.”

British Chambers of Commerce head of people policy, Jane Gratton, said:   “The labour market remains incredibly tight, in many cases affecting firms’ ability to maintain normal operations. Although these figures show the employment rate has risen it is having no noticeable impact on the overall number of job vacancies.

“The problems in the labour market are restricting growth and choking off any hope of a recovery for many firms; as inflation, supply chain disruption and energy costs also add to their headaches.

“But there are several avenues open to businesses and the government to shift this data in the right direction.

“We need to bring more economically inactive people back into the UK labour market by offering flexible working practices, rapid re-training opportunities and a focus on workplace healthcare and support.

“The Government must also reform the Shortage Occupations List criteria to include more jobs at more skill levels to give firms breathing space to train and upskill their workforce.

“The huge number of vacancies is holding back productivity and growth, and employers are at their wits’ end.”

David McCreadie, managing director of Birmingham-based IT recruitment consultancy Swi-tch, said: “The balance of power is very much with employees at the moment. The market has shifted 180 degrees since the start of the pandemic and businesses are struggling to attract top talent. Many companies are having to bend over backwards to secure talent, from offering 15 to 20 per cent increases on pre-pandemic salaries amid the cost of living crisis to fully remote opportunities.

"Businesses are really feeling the pressure of needing to invest in their staff. Employees are demanding flexibility and there is a reluctance to move back to the office on a full-time, or even hybrid, basis. The issues businesses face is that with employees holding all the cards, if employers do not offer flexibility and pay increases, their competitors will. You are no longer competing with local businesses now that travel and location are no longer a major factor. The entire country has opened up to employees so employers need to do everything they can to retain and attract them.”