Businesses and key stakeholders must refocus their efforts on tackling skills gaps following a rise in West Midlands unemployment, business leaders said today.
Figures released by the Office for National Statistics revealed a 0.3 per cent increase in unemployment in the region between July and September.
The West Midlands has the third-highest unemployment rate in the country.
Employment also fell by 0.5 per cent compared to the previous quarter (April to June), with inactivity creeping up by 0.3 per cent.
Greater Birmingham Chambers of Commerce said the region must regain momentum in tackling the skills gaps that are restricting business growth.
Chief executive Paul Faulkner (pictured) said: “Over this past year we have seen some really positive changes in the local labour market.
“More West Midlands residents are accessing work, and fewer are unemployed or economically inactive.
“For those in work, more subdued inflation and significant increases in average weekly earnings will also mean that pay packets are now stretching further.
“However, our latest Quarterly Business Report showed 22 per cent of service sector organisations listing pay settlements as a key factor in price pressures, and another rise in average weekly earnings, above inflation, will exacerbate the strain on businesses to recruit skilled talent in a tight labour market.
“In Q3 2018, of the 55 per cent of Greater Birmingham firms who attempted to recruit, 64 per cent faced recruitment difficulties, despite the West Midlands having the third-highest unemployment rate in the country.
“Stakeholders and businesses must regain momentum in working together to tackle persisting local skills gaps.
“To thrive and grow, local businesses need access to skilled talent. Surveying for our latest Quarterly Business Report has just begun, and I urge any business to take three minutes and let us know where they are experiencing difficulties, so that we can continue to engage stakeholders on their behalf.”
