The West Midlands is lagging behind the rest of the country in reducing unemployment despite leading the field in job creation, according to figures released today.
Business leaders say the latest figures from the Office for National Statistics (ONS) further highlight the need to address a skills shortage in the region.
While unemployment in the West Midlands fell by 0.3 per cent in the three months up to September 2017, the region still has the joint highest unemployment rate in the UK, alongside the North East.
However, the employment rate increased by 0.1 per cent this quarter and the West Midlands also created 110,000 more workforce jobs in the year from June 2016 – the largest increase of any UK region.
Greater Birmingham Chambers of Commerce chief executive Paul Faulkner said: “We have commented many times before about the gap between the skills available in the local labour market and those needed by employers.
“This quarter's results throw this into sharp relief. The West Midlands managed to simultaneously lead the field in jobs creation and be the only region to see an unemployment rate rise over the past year.
“While significant progress has been made to reduce the West Midlands' unemployment rate over the past five years, that progress cannot be allowed to stall if this region is going to fulfil its potential.
“Regional strategies and devolution of appropriate funding and powers to make them viable, are crucial for meeting the unique needs of this region's citizens and employers.
“That is why we are calling on the Chancellor to back the West Midlands Combined Authority and further devolution in his Autumn Budget next week.
“We know how much of an issue finding people with the right skills can be for businesses. We are encouraging all business in the Greater Birmingham to take part on the GBCC Quarterly Business Report Survey to help us better understand and represent their views.”
