Shropshire Star

More claiming unemployment benefits across the West Midlands

The number of people claiming unemployment benefits rose across the West Midlands last month.

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The Jobcentre in The Square, Shrewsbury

The regional total claiming benefits, including Universal Credit, was up 11,330 on January at 271,430.

In Shropshire the claimant count was up by 440 to 8,745 – 4.6 per cent of the working population. Telford and Wrekin had a rise of 145 to 6,710 (six per cent).

There were 115 more claimants in Powys at 3,355 (4.5 per cent).

Nationally unemployment stood at 1.7 million for the three months to January with 32.3m in employment.

The unemployment figure for the West Midlands for the three months was 177,000 – down 4,000 on the previous three-month period– with the unemployment rate at six per cent. Numbers in employment in the region were 2.67 million.

Nationally the claimant count is 2.7 million. This is a rise of 3.3 per cent on the month and the total claiming is up 1.4 million since March 2020.

The number of workers on UK payrolls increased for the third month in a row in February but has fallen by nearly 700,000 since the start of the pandemic, according to official figures.

The Office for National Statistics (ONS) said the number of payrolled workers rose by 68,000 (0.2 per cent) between January and February.

Overall there were 693,000 fewer workers on payrolls than in February 2020, with more than half – 368,000 jobs _ lost in the hospitality sector as lockdowns and restrictions hammered the industry.

The ONS added that 123,000 payroll jobs were also lost in the hard-hit retail sector.

The latest figures show the national rate of unemployment stood at five per cent between November and January, compared with 5.1 per cent in the previous three months.

Sam Beckett, ONS head of economic statistics, said: "After yet another monthly increase, there were almost 200,000 more employees on payroll in February than three months earlier, although that is still nearly 700,000 down from the start of the pandemic.

"Of the decrease since then, almost two-thirds has been among the under-25s, over half has been in hospitality and almost a third has been in London."

Chancellor Rishi Sunak said: "Coronavirus has caused one of the largest labour market shocks this country has ever faced, which is why protecting, supporting and creating jobs has been my focus throughout this crisis.

"We have taken decisive action with a £352 billion package of support.

"The continued success of the vaccine rollout provides us with hope for the future and, through our Plan for Jobs, we will continue to support people throughout the months to come."

Minister for Employment Mims Davies said: "Today's figures highlight the challenges facing us on our road to recovery, but there is reason for optimism with more workers on payrolls and over half a million vacancies out there."

British Chambers of Commerce head of economics Suren Thiru said:  “While unemployment rose slightly, the continued uptick in the timelier payroll employment data indicates that the UK jobs market is becoming more resilient.

“Ongoing wage support, greater clarity provided by the government’s roadmap and the adaptations made by some firms to operate under lockdown restrictions helped support higher payroll employment in February.

“Extending furlough will limit the peak in job losses. However, with many firms struggling with the damage done to their cashflow by a year of covid restrictions, unemployment is likely to remain on an upward trajectory until well beyond a full reopening of the economy.

“While the extension to the job support schemes will protect millions of jobs and livelihoods, it is vital that those businesses and individuals who remain excluded from government support get the assistance they need to navigate a difficult period.”

Matthew Percival, Confederation of British Industry people and skills director, said: “Clear evidence about the impact of the pandemic on young people over the past year reinforces the need to extend the deadline for the Kickstart scheme for another six months.

“With approximately five million people still on furlough the Chancellor’s move to extend and taper the scheme will help support many jobs as the roadmap for reopening gets underway.

“Continuing good progress on the vaccine rollout, combined with accelerating workplace testing, will help ensure the UK is best-placed to recover in the second half of this year.”

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