Small dip in unemployment in West Midlands as UK vacancies slump

The latest ONS data says more people in the region are in work but businesses are reducing their hiring activities across the country

Rates of unemployment in the West Midlands have fallen slightly while UK vacancies have slumped to their lowest level in over five years, official figures show.

Monthly job stats for the region published today by the Office for National Statistics (ONS) also show a slight rise in the rate of employment but also a rise in inactivity.

For the three months from February to April 2026, the percentage of people aged 16 or over who were unemployed was 5.3 per cent, a decrease of 0.8 per cent compared with the period from November to January.

A total of 73.3 per cent of 16 to 64 year olds in the West Midlands were in work, a rise of just 0.1 per cent compared with the same quarter. The inactivity rate among 16- to 64-year-olds was 22.5 per cent, an increase of 0.8 per cent over the same three months.

Nationally, vacancies in the UK have slumped to their lowest level in over five years as businesses reduce their hiring activities in the face of economic uncertainty and soaring wage costs.

The ONS said vacancies tumbled by 19,000 quarter-on-quarter to 707,000 in the three months to May which is the lowest since the three months to April 2021.

It added that the drop in vacancies was significant across retail and hospitality sectors and smaller employers while the largest fall in the quarter was in professional services.

The latest figures show Britain's rate of unemployment edged lower to 4.9 per cent in the three months to April, down from five per cent in the three months to March.

The number of workers on payrolls fell by 53,000 during April to 30.3 million but the more timely flash estimate showed a rise of 2,000 last month, though the ONS stressed this is subject to revision.

Wages growth remained unchanged at 3.4 per cent in the three months to April after recently easing back and continues to outstrip inflation rising by 0.3 per cent after taking Consumer Prices Index inflation into account.

Liz McKeown, ONS director of economic statistics, said: "The labour market remained broadly stable in the latest quarter, with further softening evident in some measures. Payroll numbers continued to fall over this period, with new recruits at their lowest level in five years."

She added there were "some signs of workers moving into self‑employment" while the decline in vacancies signalled that companies were "becoming more cautious about taking on new staff".

The ONS said its vacancies survey showed some firms are putting recruitment on hold due to economic uncertainty and higher labour costs.

The ONS said that, on an annual basis, the wholesale and retail trade sector saw the largest fall in vacancies, down 13,000 in the three months to May, while hospitality recorded a 10,000 drop.

Pat McFadden, Work and Pensions Secretary and MP for Wolverhampton South East, added: "This month's figures show that there are 400,000 more people in work than this time last year but we know ongoing instability in the Middle East is causing uncertainty in our labour market.

"We have the right economic plan for growth and stability in a volatile world and we are taking action to create opportunity and make sure that no one is left behind."

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