February 2011 headlines
The unemployment rate in the West Midlands is now at 9.8%, having increased by 1.1 percentage points over a three-month period. The number of people unemployed rose by 28,000 in the three months to December 2010 and now stands at 261,000 people. The West Midlands now has the second-highest unemployment rate of any English region.
Employment has also fallen rapidly in the West Midlands (by 1.5 percentage points over a three-month period), and is now at 68%, lower than at any other time since December 1993. The number of people in employment fell by 48,000. This is a larger fall than in many other regions, with England overall experiencing a net loss of 111,000 people from employment.The gap between national and regional rates may be widening again.
The rise in unemployment could be an indication that public sector jobs cuts are starting to impact on the unemployment figures. However, the more timely claimant count rate has remained relatively stable, rising by just 300 people between December 2010 and January 2011. Some people who are unemployed may choose not to claim unemployment benefits or may be ineligible to claim, and this may explain some of the difference between the two measures.
Our monthly updates
We have been monitoring the latest employment and unemployment data for the West Midlands, which are published monthly by the Office for National Statistics. However, future updates are currently paused.
The data on this page covers the period up to January 2011 for the claimant count, and the quarter up to December 2010 for employment and ILO unemployment.
Jobseekers' Allowance claimant rates
We've produced interactive maps showing the proportion of the working age population in the West Midlands claiming Jobseeker's Allowance in each local authority and ward.
The maps show data up to December 2010.
Employment
The employment rate for the three months to December 2010 was 67.9% in the West Midlands, decreasing by 1.5 percentage points on the quarter. This is the lowest employment rate since December 1993. The employment rate has also fallen nationally, but by less than in the West Midlands, so the gap has increased:
Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data)
The number of people in employment fell by 48,000 people in the West Midlands to 2,342,000.
ILO unemployment
The official International Labour Organisation (ILO) measure of unemployment in the West Midlands has risen to 9.8% (Oct - Dec 2010), with 28,000 more people unemployed than in the previous quarter. The unemployment rate is still 0.8 percentage points lower than it was at the peak of the recession, but the West Midlands no longer has the highest unemployment rate of any English region:
Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data)
The total number currently unemployed stands at 261,000 people.
The disproportionate impact of the recession on unemployment in the West Midlands is shown in the chart below. The gap between the unemployment rate in England and the West Midlands increased considerably between 2008 and mid-2009 but had been narrowing. However, over the last quarter the unemployment rate in the West Midlands has risen much more than across England, so the gap is widening again.
Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data)
Economic inactivity
If unemployed people stop actively seeking work they are no longer classed as "unemployed". They are classed as "economically inactive".
In previous recessions there were significant increases in economic inactivity following economic recovery, as many people gave up searching for work in the long term. It's therefore important to continue monitoring the level of economic inactivity as an indicator of longer term recovery prospects.
The West Midlands has a higher rate of economic inactivity (ie people neither in work nor seeking jobs) than the nation as a whole. However, economic inactivity rates have fluctuated throughout the recession.
Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data)
Claimant count
The Jobseeker's Allowance (JSA) claimant rate has generally remained stable over the last few months, both regionally and nationally. There has been a very small increase in the absolute number of claimants in the West Midlands.
As of January 2011, there are 157,200 people in the West Midlands claiming Jobseeker's Allowance. This is 300 more than a month earlier, but 27,400 fewer than the peak of 184,600 in October 2009.
Source: Office for National Statistics (claimant count, seasonally adjusted data)
The claimant rate in the West Midlands has not changed this month and we still have the second highest claimant count rate of all English regions, at 5.7% compared with the national rate of 4.3%. Currently, only the North East has a higher claimant rate than the West Midlands.
Source: Office for National Statistics (claimant count, seasonally adjusted data)
At a sub-regional level, there is wide variation in the numbers of people claiming Jobseeker's Allowance.
Data for December 2010 showed the percentage of working age people claiming Jobseeker's Allowance ranged from 1.4% in Stratford-on-Avon to 7.1% in Wolverhampton. All West Midlands districtshad claimant count rates lower than those they had a year ago.
To see how the recession has affected each local authority district area, see our interactive map which shows trends in claimant rates in each West Midlands local authority.
Young people
Young people have been the worst affected age group in the recession, seeing the biggest increases in their unemployment rates.
There are over 47,000 young people (aged 18–24) in the West Midlands claiming Jobseeker's Allowance, equating to one in every eleven young people (claimant rate 9.1%).
These figures represent higher youth claimant rates for the West Midlands than last month, but the West Midlands no longer has the highest youth claimant rate among the English regions, coming below the North East:
Source: Office for National Statistics (claimant count)
Local authorities in the Black Country have youth claimant rates over 10%, meaning that more than one in ten young people are unemployed and claiming Jobseeker's Allowance.
Dataset: youth claimant rates by regions and Local Authority (Jan 2011) (xls, 40kb)
Definitions
There are four headline measures:
- Employment.
- ILO unemployment (this is the offical measure of unemployment based on the International Labour Organisation definition of those looking for and available for work).
- Economic inactivity (those of working age who are neither working nor seeking work).
- Claimant count (numbers of people claiming unemployment benefit).