Unemployment continues to rise in West Midlands despite UK drop

The total number of people out of work in the region stood at 132,000 – 11,000 higher than in the previous three months to July.

The West Midlands' unemployment rate at 4.5 per cent remains ahead of the UK rate of 3.8 per cent.

Nationally, the UK unemployment dropped to its lowest level in 44 years in the three months to October as the number of unemployed women hit a record low.

However the reduction in unemployment came as wage growth stalled over the period and the number of job vacancies also shrank.

The number of people claiming unemployment benefits decreased by 13,000 to 1.28 million for the quarter, the Office for National Statistics said.

It meant the rate of unemployment stayed flat at 3.8 per cent, surpassing analyst expectations which had forecast an increase to a 3.9 per cent rate of unemployment.

This was largely driven by the number of unemployed women falling to 3.5 per cent.

Meanwhile the number of people in work increased by 24,000 to 32.8 million for the quarter, while the proportion of people in employment stayed flat at 76.2 per cent.

Despite the increase, more people were also deemed economically inactive during the period, with the level increasing by 19,000 to 8.61 million for the quarter.

The number of people claiming unemployment benefits, including Universal Credit, in the West Midlands rose by 1,645 to 138,125, or 3.8 per cent of the working population.

Claimant count in your area:

• Sandwell saw the claimant count rise by 155 to 10,085, or 4.9 per cent of the working population.

• Walsall's was up by 105 to 8,075, or 4.7 per cent of the working population.

• Wolverhampton’s claimant count increased by 110 to 9,880, or 6.1 per cent of the working population.

• Dudley had a rise of 65 to 8,405, or 4.3 per cent of the working population.

• Staffordshire’s claimant total was up by 175 to 10,930, or two per cent of the working population.

• Cannock Chase seeing a rise of to 35 to 1,485, or 2.3 per cent of the working population.

• South Staffordshire increased by 25 to 1,250, or 1.9 per cent of the working population.

• Stafford saw a rise of 35 to 1,445, or 1.8 per cent of the working population.

• Lichfield's claimant count rose to 25 to 1,180, or 1.9 per cent of the working population.

• For Wyre Forest, which includes Kidderminster, there were 50 more claimants at 1,570, or 2.7 per cent of the working population.

Nationally, average total pay increased by 3.2 per cent in the quarter, as it slowed down from 3.6 per cent the previous month, the ONS said. Analysts had a predicted that growth would only decline to 3.4 per cent.

The slowdown was driven by growth rate of just 2.4 per cent in October, as it reported the biggest monthly slump in bonus payments for more than five years.

The figures also revealed that job vacancies slid by 20,000 to 794,000, as the rate of decline continued to accelerate from the previous period.

Vacancies have now declined for ten consecutive months and have now fallen below 800,000 for the first time in more than two years.

David Freeman, head of labour market and households at the ONS, said: "While the estimate of the employment rate nudged up in the most recent quarter, the longer-term picture has seen it broadly flat over the last few quarters.

"Pay is still increasing in real terms, but its growth rate has slowed in the last few months."