Unemployment rate rises in West Midlands

There were 153,000 out of work in the region – up 5,000 from the previous three-month period when the rate was 4.9 per cent of the working population. The number in employment was 2.83 million.

Nationally the unemployment rate was down from 3.9 to 3.8 per cent with 1.29m out of work and 32.4m in employment.

Numbers claiming unemployment benefits, including Universal Credit in the West Midlands fell last month by 3,370 to 195,850 – 5.3 per cent of the working population.

Shropshire had a fall of 285 to 5,265 (2.8 per cent) with Telford and Wrekin having 120 fewer claimants at 4,690 (4.2 per cent).

The claimant total in Powys was down by 100 to 2,040 – 2.7 per cent.

Ben Marr, JobCentre Plus Mercia district partnership manger, said the number of people who are unemployed and looking for work had dropped significantly in both Telford and Shropshire.

"We continue to see record numbers of employer vacancies. To support employers to fill these vacancies, JobCentres in Telford and Shropshire have set up employer zones," he said.

The zone will enable people to showcase their skills to employer.

"Now that health restrictions have lifted, we ran a very successful jobs fair at the Youth Hub in Telford Southwater in March. This hosted 12 local employers and over 135 people looking for work attended. We also had disability employment advisers on hand to better support those with health conditions, looking for work.

"Shrewsbury JobCentre has also restarted its jobs fairs and will be running its next fair on site on April 27. We already have 10 employers who will be attending," added Mr Marr.

Darren Morgan, director of economic statistics at the Office for National Statistics, said: "Overall, employment in December to February was little changed on the previous three months, and so is still below its pre-pandemic level.

"While unemployment has fallen again, we are still seeing rising numbers of people disengaging from the labour market, and as they aren't working or looking for work, are not counted as unemployed.

"Early estimates suggest there was only a small increase in the number of employees on payroll in March, while job vacancies, although again at a record high, rose at their slowest for nearly a year.

"While strong bonuses continue to mitigate the effects of rising prices on people's total earnings, basic pay is now falling noticeably in real terms."

Chancellor Rishi Sunak said: "Today's stats show the continued strength of our jobs market, with the number of employees on payrolls rising once again in March and unemployment falling further below pre-pandemic levels.

"We are helping to cushion the impacts of global price rises through over £22 billion of support for the cost of living this financial year.

"We're also helping people to find new jobs, and ensuring work always pays as this is the best way to support households in the longer term."

Eugenia Migliori, the Confederation of British Industry's principal policy adviser, said: "The UK economy continues to create jobs, but businesses are still struggling to hire and pay is failing to keep up with inflation. Persistent skills and labour shortages, alongside rising costs, is putting a strain on households and dampening business optimism for the months ahead.

"Addressing the skills challenges facing the country requires bold action. Replacing the apprenticeship levy for a new Skills Challenge Fund will allow firms to fund more high-quality training especially in areas of future demand. Acting now will help us meet the UK's long-term skills need."

British Chambers of Commerce head of economics Suren Thiru said: “While payroll employment rose slightly and the unemployment rate continues to fall, the headline figures continued to be flattered by significant underlying factors, including a shrinking workforce.

“Increasing vacancies highlights the historic hiring crunch facing firms. With rising economic inactivity confirming that lots of workers have seemingly quit the jobs market completely, severe staff shortages may remain a persistent drag anchor on economic activity."