Shropshire Star

Unemployment falls in the West Midlands

The number of people out of work in the West Midlands, including in Shropshire, fell again in the three months to March as job creation continued to surge in the region.

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The unemployment figure for the region was down 14,000 on the previous quarter at 139,000 with the fall over the course of a year 21,000. Employment was up 57,000 to 2.74 million

Nationally the number of people in work reached a new record. It was up by 197,000 in the quarter to 32.3 million, the highest figure since records began in 1971, giving a record employment rate of 75.6 per cent.

Unemployment fell by 46,000 to 1.42 million, giving a jobless rate of 4.2 per cent, the lowest since 1975, according to the Office for National Statistics.

However the numbers claiming Jobseeker's Allowance and other unemployment benefits rose again last month in the West Midlands and nationally.

The claimant count, which includes people on Jobseeker's Allowance and the unemployment element of Universal Credit, increased by 31,200 last month to 897,000, the highest for more than three years.

The Shropshire Council area saw the number of claimants fall by 10 compared with the previous month, taking the total to 2,415, meaning 1.3 per cent of the workforce was receiving jobless benefits.

In Telford and Wrekin, there were 80 more claimants, making its total 2,170. This represents two per cent of the workforce.

In Powys, the amount of claimants fell by 50 to 735. This represents one per cent of the workforce.

Average earnings nationally increased by 2.6 per cent in the year to March, down by 0.2 per cent on the previous month, but 0.2 per cent up on a year ago. The latest CPI inflation figure is 2.5 per cent.

Senior ONS statistician Matt Hughes said: "With employment up again in the three months to March, the rate has hit a new record, with unemployment remaining at its lowest rate since 1975.

"The growth in employment is still being driven by UK nationals, with a slight drop over the past year in the number of foreign workers. It's important to remember, though, that this isn't a measure of migration.

"Growth in total pay remains in line with inflation, meaning real earnings are flat on the year."

Work and Pensions Secretary Esther McVey said: "Since 2010 we have seen 3.2 million more people move into work right across the UK. Youth unemployment has fallen by over 40 per cent and the unemployment rate at its joint lowest since 1975.

"The figures once again cement that turnaround, with an employment rate of 75.6 per cent, and on average over 1,000 people each and every day, since 2010, getting a job.

"With wages growing faster than inflation and increases in the personal tax allowance, not only are more people bringing home a pay packet but they are keeping more of their hard-earned money for themselves and their families."