West Midlands records highest drop in employment in UK - as national jobless rate rises to highest level since 2021
New figures show the UK unemployment rate has risen to its highest level in four years - with the West Midlands hit hardest.
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Government figures out today (Tuesday, June 10) show the unemployment rate in the West Midlands region has risen by 1.5 per cent, meaning that just over 5 per cent of people in the region are now out of work (5.2 per cent).
Nationally, the jobless rate increased to 4.6 per cent in the three months to the end of April, up from 4.5 per cent on the previous three-month period, recording the highest level since 2021, while annual growth in regular wages also slowed to a below-forecast 5.2 per cent.
The UK Claimant Count for May 2025 also increased on the month and the year to 1.74 million.
The figures published by the Office for National Statistics will come as a blow to Chancellor Rachel Reeves ahead of a spending review due to be announced this week, as tax increases introduced in April added to a wider slowdown in the employment market.
The numbers are the first to be published since a rise in employer national insurance contributions in April designed to raise around £25 billion for Government coffers, affecting almost 1m businesses - as well as a 6.7 per cent rise in the national living wage.
More detailed statistics, showing a more detailed breakdown by individual local authority areas, are due out next month.
Economists say a drop in the number of vacancies in the UK jobs market, which fell by 63,000 in the quarter, showed employers were holding back from recruiting new workers or replacing people when they move on due to the extra cost of employing workers since the turn of the financial year.
While the data reveals that unemployment in the wider West Midlands region has increased by 0.7 per cent, the Black Country itself bucked the trend and seen a drop in claimants by 315, bringing the total to 49,070 down from 49,385.
However, the Black Country Chamber of Commerce has cautioned that these figures may not yet show the full impact of recent economic changes across Dudley, Sandwell, Walsall and Wolverhampton.
Sarah Moorhouse, chief executive of the Black Country Chamber of Commerce, said: "The modest decrease in claimant numbers across our region offers some encouragement, but we must be cautious about interpreting this as a sign of sustainable economic improvement.
"Our members are demonstrating remarkable resilience in challenging conditions, but we’re very really concerned about the impact of increasing costs of doing business, rising energy prices, and ongoing uncertainty around tariffs and trade deals.
"While the national picture shows a modest rise in employment, the broader West Midlands data indicates our region faces distinct challenges. The government must recognise these regional variations in the upcoming Comprehensive Spending Review.
"We need targeted investment in skills development and infrastructure that addresses the specific needs of Black Country businesses, particularly in our key manufacturing and engineering sectors which form the backbone of our regional economy.
"Black Country businesses have shown their adaptability time and again, but they need a stable policy environment and meaningful support to maintain employment levels and drive future growth."
The highest employment rate in the UK was recorded in the South West at 80 per cent, while the lowest was recorded in the North East at 68.2 per cent.
The highest unemployment rate was in London (6.4 per cent) and the lowest was in Northern Ireland (1.8 per cent), while the highest economic inactivity rate was in the North East (28.1 per cent) and the lowest was in the South West (17.2 per cent), in February to April 2025.
The Office for National Statistics warned that the statistics were subject to an "increased amount of volatility" due to improvements in data collection for its widely criticised Labour Force Survey (LFS) estimates.
The news comes as the Bank of England ponders a cut in interest rates ahead of an announcement due next week, with bank bosses monitoring the jobs market for signs of weaker conditions.
The Bank of England is widely expected to keep rates on hold as it keeps an eye on the impact of volatile trading conditions as a result of US President Donald Trump's tariff-based trade war.
