Region's unemployment increases as number of Shropshire benefit claimants also goes up

The Office for National Statistics (ONS) said the rate fell to 3.5 per cent over the three months to August – the lowest since February 1974.

Economists had predicted it would stay steady at 3.6 per cent, the rate it hit during the previous quarter.

It came after a joint-record rise in the number of people considered "economically inactive" – not in work or searching for work – due to long-term sickness.

Economic activity increased by 0.6 percentage points to 21.7 per cent, driven by people aged between 50 and 64. This meant that both the rate of unemployment and employment declined over the period.

The employment rate decreased by 0.3 percentage points to 75.5 per cent for the quarter. Meanwhile, the number of UK workers on payrolls rose by 69,000 between August and September to 29.7 million, the ONS said.

In the West Midlands, including Shropshire, the unemployment figure was 139,000 (4.7 per cent of the working population) in the three months to August – up 3,000 on the three months to July. The region's employment figure fell from 2.85 million to 2.83 million.

The West Midlands saw a fall in the numbers claiming unemployment benefits, including Universal Credit last month. The total of 177,405 (4.8 per cent) was down 45 on the previous month.

In Shropshire the number of claimants was up 30 to 4,600 (2.4 per cent) with Telford and Wrekin increasing by 15 to 4,050 (3.6 per cent). Powys had 15 less claimants at 1,690 (2.3 per cent).

Ben Marr, partnership manager (Shropshire) for the Department for Work and Pensions, said: “Our most up to date unemployment figures from August 2022 clearly show the continued economic growth and stability within Shropshire over the last 12 months, with those who are unemployed and looking for work continuing to fall.

"The new monthly claimant count figures produced by the ONS, which combines benefit claimants available and looking for work, on both Jobseekers Allowance and the ‘work search group’ on Universal Credit released today.

"Shropshire local authority area had a reduction of 26 per cent on the year to August 2022 and Telford and Wrekin a reduction of 22 per cent on the year. This represents a total reduction of 2,770 people across both local authority areas.

"Youth unemployment figures also continue to be positive, with Shropshire seeing a reduction of 30 per cent and Telford and Wrekin a reduction of 20 per cent for those aged 18-24 who are unemployed and looking for work in the August 2022 figures.

"In Shropshire the job market remains buoyant locally. Jobcentre Plus offices across the region continue to work in partnership with an increasing number of local employers, bringing them into our offices and youth hubs to meet potential candidates face-to-face.

"This helps them to fill their vacancies quickly and effectively, especially as we move into the busy Christmas trading period. It is not uncommon for jobseekers to be offered jobs ‘on the spot’ when attending our many jobs fairs.

"Where jobseekers do need extra help to take up these vacancies, we run short training courses in conjunction with local training providers to help bridge the skills gap.

"Linked with our various employment partners we can then offer claimants a ‘guaranteed job interview’ within the sector they have completed their training. Upcoming sectors where we can offer this support include HGV licence, FLT licence, teaching assistants, hospitality and many more throughout autumn."

ONS head of labour market and household statistics David Freeman said: "The unemployment rate continues to fall and is now at its lowest for almost 50 years.

"However, the number of people neither working nor looking for work continues to rise, with those who say this is because they're long-term sick reaching a record level.

"While the number of job vacancies remains high after its long period of rapid growth, it has now dropped back a little, with a number of employers telling us they've reduced recruitment due to a variety of economic pressures.

"However, because unemployment is also down, there continues to be more vacancies than unemployed people."

In July to September 2022, the estimated number of vacancies fell by 46,000 on the quarter to 1,246,000, the ONS said, amid a slowdown in company investment.

The new data also showed another slight improvement in pay but it continues to lag far behind inflation.

Average pay, excluding bonuses, grew by 5.4 per cent over the three months from June to August.

However, it comes after Consumer Price Index (CPI) inflation struck 9.9 per cent in August, highlighting a still significant gap between Britons' pay packets and the cost of goods and services.

In response, Chancellor Kwasi Kwarteng said: "Countries around the world are facing economic challenges but today's statistics remind us that the fundamentals of the UK economy remain resilient, with unemployment at its lowest point for almost 50 years.

"Our ambitious growth plan will drive sustainable long-term growth, meaning higher wages and better living standards for everyone, and we are cutting taxes so people can keep more of what they earn."

Kitty Ussher, chief economist at the Institute of Directors, said: "The labour market remains extraordinarily tight with, for the first time ever, more vacancies in the economy than the number of people looking for work, and no let-up in hiring in September.

"Although the level of vacancies now looks like it has peaked, it remains significantly higher than before the pandemic, at 1.2 million.

"Combined with such a low rate of unemployment and pay rises edging upwards, we see no reason why the Bank of England would pause its upward march of interest rate rises when it meets in early November."