Shropshire Star

Unemployment falls in West Midlands and Shropshire

The number out of work in the West Midlands fell in the three months to March and the numbers claiming unemployment benefits last month were also down.

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The region's unemployment figure was down 11,000 from the previous quarter to 169,000 with the claimant total falling by 4,695 to 266,435.

In Shropshire there was a drop from March of 255 in the number of people claiming unemployment benefits, including Universal Credit, to 8,385 (4.4 per cent of the working population.

Telford and Wrekin also saw a fall of 95 to 6,550 (5.9 per cent).

In Powys there were 40 fewer claimants at 3,180 (4.2 per cent).

Ben Vaughan, Shropshire employer adviser manager at Jobcentre Plus, said: “The overall number of Universal Credit claimants has once again remained relatively static across our constituencies in Shropshire, which is very much in line with the wider West Midlands zone.

"However, the total number of Universal Credit claimants aged 18-24 across our six job centres is at its lowest total since June 2020, with the successful roll out of the Kickstart scheme seeing many of our younger jobseekers return to employment with many exciting new jobs being created through the scheme each week.

"Jobcentre Plus is also partnering with both local authorities in Shropshire to open Youth hubs in Shrewsbury, Oswestry, Bridgnorth and Telford, the first of which will open its doors in June, further strengthening the support available locally to younger jobseekers.

"With the new job search support 'Restart' scheme starting in June, there will also be extra help in place for people who have been unemployed for over 12 months, and changes to allow Universal Credit claimants spend more time retraining and reskilling show the government’s commitment to support jobseekers of all ages to move back in employment or take those first steps towards a new career.

"During the week when many of our hospitality, catering and leisure employers are inviting their customers back into their premises for the first time this year, a rise in advertised local jobs and an investment in support for those unemployed is great news for Shropshire.”

Nationally the number of UK workers on payrolls surged for the fifth month in a row in April as the lifting of lockdown restrictions saw the reopening of shops and outdoor dining on April 12, official figures have shown.

The Office for National Statistics said the number of payroll workers rose by 97,000 between March and April, while it added that job vacancies also continued to increase as the economy jumped back into life.

The latest figures show that the overall rate of unemployment fell once more, to 4.8 per cent in January to March - the largest quarterly decrease since September to November 2015. The West Midlands rate was 5.7 per cent.

The national unemployment figure was 1.62 million – down 121,000.

But the data also showed the toll taken by the crisis on the jobs market, with 772,000 fewer UK workers on payrolls than before the pandemic struck last spring.

Darren Morgan, director of economic statistics at the ONS, said: "The number of employees on payroll rose strongly in April as the economy began to reopen, continuing the improvement from its November trough.

"There remains, however, three quarters of a million people fewer on the payroll compared with the pre-pandemic peak.

"With many businesses reopening, the recent recovery in job vacancies continued into April, especially in sectors such as hospitality and entertainment.

"The renewed lockdown at the beginning of 2021 saw a sharp rise in the number of previously unemployed people no longer looking for work, helping the unemployment rate to fall on the quarter.

"This mirrored what happened during the first lockdown."

Priority

The number in work in the West Midlands in January to March was 2.79 million – 74.2 per cent of the working population. The UK employment rate is 75.2 per cent.

Chancellor Rishi Sunak said: "Protecting and creating jobs continues to be my top priority.

"While sadly not every job can be saved, nearly 2 million fewer people are now expected to be out of work than initially expected – showing our Plan for Jobs is working.

Minister for Employment Mims Davies MP said: “A continued fall in unemployment, a further rise in vacancies, and growth in the employment rate is welcome news as we continue on our roadmap to recovery.

“While there is more to do to make sure we support jobseekers over the coming months, these figures highlight the resilience of our jobs market and ability for employers to adapt – and through our Plan for Jobs we’re continuing to create new opportunities for people right across the country.”

British Chambers of Commerce head of economics, Suren Thiru, said: “The decline in the unemployment rate and the rise in payroll employment is further confirmation that the UK jobs market is now more resilient to the ongoing restrictions.

“Continued Government support and the easing of restrictions as the UK moved to step two of the government’s road map helped drive higher payroll employment in April.

“The rise in the number of job vacancies points to an encouraging upturn in demand for labour amid the gradual reopening of the economy and the strong vaccine rollout."

Matthew Percival, Confderation of British Industry director of people and skills, said: "Having the highest number of vacancies since the pandemic first hit shows the value of the road map for reopening the economy. However, businesses are starting to report vacancies they're struggling to fill so Government support for skills and retraining is essential.

“Businesses increasingly need to know what rules will be in place after June 21 to make their next reopening decisions. They're hoping to avoid any further bumps in the road and will be closely watching the trajectory of new variants and the conclusion of reviews into social distancing and Covid-status certificates.”