Unemployment falls slightly as wage growth hits lowest in two years – Chamber

Both the regional and national unemployment rates fell slightly between April and June 2024, according to new figures released today.

And a slowdown in wage growth could influence the Bank of England’s decision to cut interest rates again before Christmas, business leaders said.

The Office for Nationals Statistics (ONS) revealed West Midlands unemployment decreased by 0.1 per cent in the April to June period.

However, the region still has the third highest unemployment rate in the UK behind London and the East Midlands.

During the same period, there was also a 1.2 per cent decrease in employment in the West Midlands.

Meanwhile, wage growth has slowed to its lowest for two years.

Annual growth in employees' average regular earnings (excluding bonuses) in Great Britain was 5.4 per cent in April to June 2024 and annual growth in total earnings (including bonuses) was 4.5 per cent.

Annual growth in real terms - adjusted for inflation using the Consumer Prices Index including owner occupiers' housing costs (CPIH) - was 2.4 per cent for regular pay, and 1.6 per cent for total pay.

Job vacancies decreased on the quarter for the 25th consecutive period in May to July 2024.

There was an estimated 884,000 vacancies in the UK – a decrease of 26,000 or 2.8 per cent from February to April 2024.

Raj Kandola (pictured), director of external affairs at Greater Birmingham Chambers of Commerce, said: “This morning’s labour market figures will make for interesting reading in both the Treasury and the Bank of England with the slowdown in wage growth likely to influence the Monetary Policy Committee’s decision to further cut interest rates ahead of Christmas.

“Both regionally and nationally, we saw a fall in unemployment. However, the unemployment rate in the West Midlands remains one of the highest in the country and once again underlines the challenges local businesses face in accessing skilled talent – a trend which was consistently reflected in our latest Quarterly Business Report.

“As a Chamber, we look forward to working closely with local and regional stakeholders to ensure skills provision is aligned with the needs of Greater Birmingham businesses.”