Unemployment figures don't reveal true extent of challenges facing West Midlands businesses after JLR shutdown - chamber

The impact of the Jaguar Land Rover (JLR) shutdown on the Black Country supply chain means latest unemployment figures don’t reveal the true extent of the current challenges facing West Midlands businesses.

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That’s the message from the Black Country Chamber of Commerce, as figures published on Tuesday (October 14) revealed the West Midlands has the highest percentage of unemployed people in the UK, at 6.2 per cent. 

The ONS data for September 2025 showed the Black Country overall claimant count sitting at 47,470 - with Dudley, Sandwell, Walsall and Wolverhampton all seeing a reduction in the number of people across all ages claiming Job Seekers Allowance - compared to the same month last year.

However, the number of young people aged 18 to 24 claiming work-related benefits was up in all of the four boroughs, with a total of 9,935 out of work in total.

Stephanie Sullivan, head of marketing and communications at the chamber, said the figures reflected the findings of its latest economic survey - businesses simply were not hiring.

She said: “These statistics don’t capture the full picture facing Black Country businesses given the recent JLR shutdown. The attack continues to significantly impact the region’s automotive supply chain, which employs 13,000 people across the Black Country alone. 

Black Country Chamber of Commerce's Stephanie Sullivan
Black Country Chamber of Commerce's Stephanie Sullivan

“We know that 14 per cent of businesses supplying to JLR who responded to a survey said they were already making redundancies.

“Our own quarterly economic data shows most Black Country businesses are keeping their hiring plans on hold. Our members are keenly aware of the challenges ahead and we are supporting them in these challenging times.”

Meanwhile, Jonathan Dudley, partner and head of manufacturing at Crowe, said this week that JLR supply chain firms still face a real problem despite the Government’s £1.5 billion loan guarantee to help JLR and its suppliers.

He said: “There are concerns across the supply chain about the longer-term effects of this cyber-attack.

“For some businesses there just is no time to wait for money to trickle down and across supply chains. Their cash need is immediate to avoid making fundamental decisions about being able to continue trading.

“Even if businesses survive the next three months, what about 12 months later? How many of those firms will survive? There is a risk of repercussions further down the line."

The Department for Work and Pensions has said it has a number of initiatives running to help bring down the unemployment level in the region.

In Wolverhampton the DWP has joined forces with Crown Rail which is running a two-week training programme from November 3, offering training and interview opportunities for rail track maintenance operative vacancies.

In West Bromwich a Road to Logistics programme, starting on November 10, offers training needed to obtain an LGV licence, opening doors to careers in logistics. On completion, participants will be guaranteed an interview with DX or Allied Bakeries, in West Bromwich.

In Walsall, Bridle Court Jobcentre is hosting a work experience/volunteering jobs fair on October 24 as a way for people to learn new skills or step into employment.

Bilston Jobcentre will be hosting an event on November 28 with employers and training providers offering tips on applying for apprenticeships, the range of apprenticeships on offer and how to apply successfully.

And Molineux House Jobcentre in Wolverhampton is hosting a week of events, from November 3, with a focus on opportunities for people aged 50-plus that will include matching jobseekers up with training providers and sessions on CVs.

DWP staff at Oldbury Jobcentre are also working with The Range to support its recruitment drive for a new store which includes seasonal vacancies, with interviews scheduled for October 30 and 31. The DWP said 20 retail, two cleaning and four warehouse vacancies are available.