Shropshire jobless numbers lower than last year as unemployment in West Midlands is second highest in the country - new figures show

The data, published by the ONS today, reveals there were approximately 182,000 people out of work in the region in the three months to June, up 1.3 per cent on the previous quarter and 0.9 per cent on the same period in 2024.

Just over one in five adults of working age (21.9 per cent) were economically inactive, according to the labour market statistics.

Only London had a higher rate of unemployment at six per cent but a slightly lower rate of economic inactivity at 20.1 per cent.

In Shropshire, however, the number of people claiming Job Seekers Allowance and Universal Credit in July was 4,535 - 11 per cent lower than the same period last year - although the number of 18 to 24-year-olds claiming UC was up eight per cent year on year.

In Telford and Wrekin the number of Universal Credit claimants remained the same as in 2024 (4,705 people), although similarly the number of 18-24-year-olds on UC was up nine per cent compared to July 2024.

Nationally the figures show the area with the highest employment rate in the UK was the South West (80.2 per cent) compared to the West Midlands where 73.6 per cent of people are employed.

The ONS said the number of payrolled employees has decreased for all regions and countries of the UK, except Northern Ireland where it has increased by 0.7 per cent.

The drop in workers follows an increase in national insurance contributions and a hiking of the national minimum wage in April.

Nationally the UK unemployment rate for people aged 16 years and over was estimated to be 4.7 per cent for April to June - above estimates of a year ago and up in the latest quarter. Meanwhile the UK economic inactivity rate for working age people was estimated at 21 per cent for April to June - below estimates of a year ago and down in the latest quarter.

The UK claimant count for July 2025 decreased on the month and the year to 1.695 million; while UK vacancies fell by 5.8 per cent in May to July.

The ONS said feedback from a survey carried out suggests some firms may not be recruiting new workers or replacing workers who have left.

Meanwhile, average earnings growth, excluding bonuses, stood at five per cent for April to June (5.7 per cent for the public sector and 4.8 per cent for the private sector).

ONS director of economic statistics Liz McKeown said of the figures: “Taken together, these latest figures point to a continued cooling of the labour market.

“The number of employees on payroll has now fallen in 10 of the last 12 months, with these falls concentrated in hospitality and retail.

“Job vacancies, likewise, have continued to fall, also driven by fewer opportunities in these industries.

“Growth in basic pay stayed steady, while including bonuses the rate slowed a little, though nominal growth remains strong by historic standards.

“However, real pay growth fell, due to rising inflation.

“Private sector basic pay growth also edged down and remains below the public sector rate, which increased.”

Ruth Ross, chief executive of Shropshire Chamber of Commerce, said businesses have been "feeling the heat from a raft of cost pressures" and added: “We know that continued wage growth is creating real challenges for Shropshire businesses, and is undoubtedly impacting on job opportunities.

“While unemployment across the county remains fairly stable, we know that many businesses have held back on recruitment in recent months - and others have reduced their staffing levels - following the national insurance hike earlier this year. 

“Labour costs remain the biggest single cost pressure for businesses, and there is a limit to how much of this they can continue to absorb.”

The Department for Work and Pensions (DWP) has urged employers in Telford and across Shropshire to take advantage of recruitment support available through local jobcentres.

Louise Johnson, DWP partnership manager, said: “Our jobcentres are open for recruitment events tailored to individual employers, and we regularly host job fairs that bring multiple businesses together under one roof. We can also organise work academies and boot camps to help prepare candidates for roles.”

Bridgnorth Jobcentre will be hosting a five-day recruitment event from August 19 to 28 to support hiring for a new McDonald’s site opening in the area, and on August 27 Whitchurch Job Centre interviews will be taking place for roles in the education sector to fill vacancies in educational settings across Shropshire. At Market Drayton Library a series of ‘Into Work’ sessions will provide help for people needing employment support, starting on September 3.

Minister for Employment Alison McGovern said: “We are determined to see unemployment fall - that’s why we’re focused on getting people into good jobs by joining up work, health and skills support and transforming jobcentres to focus on genuine support not ticking boxes.

“As we grow the economy and transform opportunity in every area with our Plan for Change, we will ensure no one will be left on the scrapheap.”

She said 384,000 jobs have been added to the UK economy since last summer - “putting more money in people’s pockets” - and she said the figures show “real progress with economic inactivity down”. 

Shropshire Chamber of Commerce is set to launch its latest Quarterly Economic Survey next week - with businesses of all sizes and sectors from Shropshire and Telford & Wrekin invited to get involved to help paint a comprehensive and accurate picture of the challenges facing local employers.