Region bucks trend with slight rise in number out of work

The Office for National Statistics (ONS) said there were 1.34 million unemployed in the quarter to January, down 88,000 on the previous three months and below the 1.36 million recorded in December to February 2020.

The unemployment rate fell back once again, to 3.9 per cent in the most recent quarter.

It came as the number of workers on payrolls jumped by 275,000 between January and February to a fresh record of 29.7 million, with the ONS saying demand for workers "remains strong".

Vacancies also hit a new high, up 105,000 quarter on quarter to 1.3 million as firms scrambled to secure staff amid a recovering wider economy.

The unemployment rate for the West Midlands – including Shropshire – for the three months to January was 148,000 – a rate of 4.9 per cent of the working population and up 1,000 on the previous three months. The number in employment was 2.84 million.

Numbers claiming unemployment benefits, including Universal Credit, increased across the West Midlands in February by 1,370 from January to 199,220 – 5.4 per cent of the working population.

Shropshire had a drop of 30 to 5,550, Powys fell by 25 to 2,140, but Telford and Wrekin bucked the trend with an increase of 95 to 4,810.

Ben Marr, partnership manager (Shropshire) for the Department for Work and Pensions, said: "More people in Telford and Shropshire are now in paid employment and job vacancies in the area are booming.

"Despite a slight rise in the Universal Credit claims figures, The PAYE Real Time Information (RTI) data broken down by local authority shows that Shropshire currently has 133,449 payroll employees, up 2,165 on the quarterly figure and up 3,829 since February 2020. Telford & Wrekin currently has 83,689 payroll employees, up 1,654 on the quarterly figure and up 3,400 since February 2020.

"There are over 1,000 live vacancies in Telford and Shropshire on the Find A Job website alone. As part of the Government’s ‘Way To Work’ campaign, Jobcentres in Telford and Shropshire are continually working in collaboration with employers both small and large, to support with their recruitment, to help fill these vacancies.

"As part of this collaborative approach, we are continually looking at how the Jobcentre can support employers with their recruitment in a practical way.

"Employers working with us can access office space within a Jobcentre to promote their organisation and their vacancies, as well as chat with or interview potential applicants. During customer appointments, Jobcentre Plus Work Coaches promote vacancies to jobseekers with the relevant skills and experience.

"We are also actively endorsing the ‘Find A Job’, job search website to employers, as an efficient and effective way to quickly advertise a vacancy and recruit staff. This website allows employers to highlight if they are ‘Disability Confidant’. This as well as utilising the information on the ‘Access To Work’ website, are a great way for employers to ensure that they are appealing to jobseekers with a disability and not missing out on potential applicants, when recruiting in a ‘jobseekers market’.

"To ensure that people in the local area have the skills to take up the growing number of vacancies, Jobcentre Plus are running an increasing number of sector-based work academy programmes. These programmes help to upskill jobseekers to enable them to fill the advertised vacancies. During February we successfully ran sector-based work academy programmes for a number of key sectors and in March we will be running further programmes across Telford and Shropshire for local jobseekers including: customer service, ICT, teaching assistant, HGV, care and fork lift truck drivers.

"Employers wishing to engage with the Jobcentre services to help fill their vacancies, should make contact with their local Jobcentre in the first instance.”

The ONS figures also revealed the ongoing pressure on household finances, as regular pay failed to keep up with soaring inflation, with average weekly earnings up 3.8 per cent, excluding bonuses.

This was 1.6 per cent lower than Consumer Prices Index (CPI) inflation over the same period, according to the ONS.

Grant Fitzner, chief economist at the ONS, said: "The labour market continues to recover from the effects of the pandemic, with the number of unemployed people falling below its pre-pandemic level for the first time and another strong rise in employees on payroll in February.

"However, the number of people out of work and not looking for a job rose again, meaning total employment remained well below its pre-pandemic level.

"We have seen yet another record number of job vacancies and, with the redundancy rate falling to a new record low, demand for workers remains strong."

Suren Thiru, head of economic at the British Chambers of Commerce, said: “Rising payroll employment and declining unemployment suggests that demand for workers remains robust despite growing headwinds.

“Although there was a modest pick-up in regular pay growth, wages are still comfortably trailing behind inflation, which is putting the brakes on consumer spending by eroding their spending power and confidence.

“Record vacancies highlights chronic imbalances in the UK labour market with demand for workers outpacing supply. With rising economic inactivity indicating a deep-seated decline in worker participation, particularly among older people, recruitment difficulties may persistently drag on economic output.

“While demand for labour is currently strong, the damage to firms’ finances from rising cost pressures, a weakening economic outlook and next month’s national insurance rise may significantly squeeze recruitment intentions and pay growth in the near term.

“We urge the Chancellor to use next week’s Spring Statement to delay the National Insurance rise by one year to give firms the financial headroom to weather this surge in costs facing businesses and support the wider economy.”