Benefit claimant figures drop across Shropshire and Powys

This comes as numbers claiming unemployment benefits, including Universal Credit, in the West Midlands as a whole dropped slightly last month by 60 to 271,845 from August with a rate of 7.4 per cent of the working population.

Shropshire saw claimant numbers drop by 80 to 9,075 – or 4.8 per cent – with Telford and Wrekin having 75 fewer claimants at 7,240, 6.5 per cent.

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For Powys there was also a fall of 60 to 3,650 – or 4.9 per cent.

The number of UK workers on company payrolls edged up by 20,000 in September but has fallen by nearly 700,000 since March as the coronavirus crisis has claimed jobs across the economy, according to official figures.

The Office for National Statistics said the number of employees on payrolls dropped by 673,000 between March and September.

It added that UK unemployment rose by 138,000 quarter on quarter to 1.52 million in the three months to August.

This saw the rate of unemployment jump to 4.5 per cent, from 4.1 per cent in the previous three months.

For the West Midlands, while the unemployment figure was static at 135,000, the unemployment rate dropped from 4.9 per cent to 4.5 per cent and it was the only region to see a fall. The total in employment in the region was 2.79 million.

'Virus has impacted jobs market'

Minister for Employment Mims Davies said: “We know the virus has impacted our jobs market in recent months and that’s why our £30 billion Plan for Jobs will continue to help protect, support and create jobs.

“It’s encouraging to see employers are bringing people back from furlough, and the number of vacancies is increasing.

“We’re supporting people into work, doubling the number of our Work Coaches across Jobcentres and helping those made jobless by the pandemic through our newly launched Job Entry Targeted Support. From next month young people across the country will be starting roles on the £2 billion Kickstart scheme helping them get crucial experience and build vital skills.”

Jonathan Athow, deputy national statistician at the ONS, said: "The latest monthly tax numbers show that the number of employees on the payroll was little changed in September.

"However, in total there were still nearly 700,000 fewer than in March, before the lockdown."

He added: "Since the start of the pandemic there has been a sharp increase in those out of work and job-hunting but more people telling us they are not actively looking for work.

'Stark rise in redundancies'

"There has also been a stark rise in the number of people who have recently been made redundant."

Matthew Percival, Confederation of British Industry director for people and skills, said: “These figures are starting to show what everybody knew to be true; that redundancies are on the rise.

"While it’s promising to have seen vacancies pick up over the summer, the number of those out of work also grows.

“The Government’s flexibility and support packages have reduced job losses substantially over the summer and making support match tiered local lockdowns will protect jobs too.

“Successfully ramping up the testing regime will be a key component to securing an economic recovery down the road.”

Federation of Small Businesses national chairman Mike Cherry, a Staffordshire businessman, said: “These figures are a stark reminder of the human impact of this terrible pandemic.

"Through adjustments to the Job Support Scheme, the Government is making welcome efforts to aid job retention.

"As harsher restrictions take effect across many parts of England, further measures may well be needed.

“As our economy is changed for the long-term, policymakers should start looking at additional interventions to aid job creation.

"The new Kickstart and Job Entry Targeted Support initiatives, taken alongside incentives to hire apprentices, mark critical steps forward.

"From here, we need to see the Government bringing down the upfront costs of employment across the board in order to stimulate hiring activity – starting with Employer National Insurance Contributions, which serve as a stifling jobs tax.

'Recognise fundamental role of start-ups'

“Policymakers should also recognise the fundamental role that start-ups and the self-employed played in our recovery from the last recession.

"If we want them to play that role again, we have to throw them as many lifelines as possible.

"Too many have been excluded from support measures – including company directors and the newly self-employed – that needs to change.

“Equally, we need to look at how we encourage more of those currently out of work to strike out on their own.

"A Kickstart Start-Up initiative, modelled on the Kickstart scheme, for those looking to start their own firm could mark one way forward, building on the success of the New Enterprise Allowance and Start-Up Loan programmes.”