Area rise of 16 per cent unemployed one of largest in country
Mar 19 2009 by Anna Blackaby, Birmingham Post
The West Midlands witnessed one of the sharpest rises in unemployment in the country according to the latest official figures in which the national jobless numbers exceeded two million.
Unemployment in the West Midlands rose by 16 per cent in the quarter to January, with an extra 29,000 people becoming unemployed, bringing the total to 210,000. The region’s unemployment rate stands at 7.9 per cent, 1.4 per cent higher than the national rate of 6.5 per cent.
Across the UK, unemployment surged past two million for the first time in 12 years while those nationwide signing on for benefit soared by a record 138,000 last month.
The total number of people out of work in the UK, including those not eligible for benefit, jumped by 165,000 in the quarter to January to 2.03 million, the worst figure since Labour came to power in the summer of 1997.
The quarterly rise was the highest since 1991, and the total has increased by 421,000 in the past year, the Office for National Statistics said.
Kiran Virk, policy adviser at Birmingham Chamber of Commerce and Industry, called for the government to consider wage subsidies to help keep people in employment.
She said: “The continuing rise in unemployment levels reflects the extremely challenging times that the economy is facing and the tough decisions that businesses are having to make on a daily basis. Even with some staff accepting pay freezes and working fewer hours, it is clear that employers are facing significant financial pressures. The outlook for unemployment is worsening and there is an urgent need for action.
“We would like to see the government seriously consider offering support to firms who are introducing temporary short-time work patterns as a measure to avoid carrying out compulsory redundancies through temporary wage subsidies.
“The government should consider a wage subsidy to help employers keep people in jobs for as long as possible. It should also keep public sector investment going and lower taxes to stimulate demand and encourage investment.
“It is vital that, as unemployment increases, efforts are focused on ensuring that people have access to readily available information on vacancies near them and are given the support and advice they require to apply for jobs.
“In the three months to the end of February Job Centre Plus report that 64,400 vacancies were notified to them in the West Midlands, and at present there are 17,865 vacancies unfilled.”
Midlands TUC regional secretary Roger McKenzie said the figures were another “grim milestone” in the return of mass employment to the UK. He said: “It will get worse before it gets better as unemployment always persists even after a recovery starts. But this unemployment has not just been made in Britain, and requires an international response. It is beginning to look like the G20 summit may not agree the co-ordinated boost to the world economy called for by Barack Obama and Gordon Brown.
“International summits may seem a long way from the dole queues but without such a stimulus unemployment will go higher and last longer. We need to put every pressure on world leaders to work together to fight the recession.”
