More people accessing work but labour market remains tough – Chamber

There has been a steady increase in the number of West Midlands residents finding employment over the past year, new figures reveal today.

But Greater Birmingham business leaders warn skills shortages and high wages mean the labour market remains tough for firms.

Office for National Statistics (ONS) figures for the November 2024 to January 2025 period revealed the region’s employment rate has risen by 0.9 per cent compared to the same period 12 months earlier.

Economic inactivity also decreased by 1.1 per cent but unemployment also increased by 0.2 per cent in the same period.

Meanwhile, national job vacancies are broadly unchanged on the quarter (December 2024 to February 2025).

Annual growth in employees' average regular earnings (excluding bonuses) in Great Britain was 5.9 per cent in November 2024 to January 2025, and annual growth in total earnings including bonuses was 5.8 per cent.

Annual growth in real terms (adjusted for inflation using the Consumer Prices Index), including owner occupiers' housing costs (CPIH), was 2.2 per centfor regular pay and 2.1 per cent for total pay in November 2024 to January 2025.

Emily Stubbs (pictured), head of policy at Greater Birmingham Chambers of Commerce, said: “Today's figures suggest an encouraging increase in the proportion of West Midlands residents accessing work over the last year, which regional stakeholders must continue to build upon.

“Nevertheless, the local labour market remains a significant challenge for employers in Greater Birmingham who continue to struggle with skills shortages and high wage bills, and face the looming spectre of increases in employment taxes from April.

“These cost pressures are forcing many firms to rethink staffing plans for the months ahead, which could have significant implications for the labour market later this year.

“The Chancellor must use next week’s spring statement as an opportunity to reduce the mounting tax burdens on businesses and tackle the ongoing skills crisis, so that firms can invest, recruit and grow.”

Read the Chamber's latest Quarterly Business Report 

Read our research into the impact of the Autumn Budget on Greater Birmingham Businesses