We need support as global strife undermines region’s recovery

AS President of the Greater Birmingham Chambers of Commerce, I want to commend the resilience of our business community in the face of mounting challenges.

- Nasir Awan

The West Midlands continues to play a pivotal role in the UK's economy, driven by its industrial heritage and growth in the digital and green sectors.

However, recent trends suggest growing strains that could threaten this momentum.

Labour market data from the University of Birmingham’s City REDI highlights concerning developments.

In the three months to March 2025, employment among those aged 16-64 dropped to 72.7%—a fall of 1.5 percentage points from the previous quarter and 1.2 points year-on-year.

The region’s unemployment rate climbed to 4.5%, slightly higher than the national average, with youth unemployment particularly pronounced.

Moreover, economic inactivity rose sharply to 23.8%, compared to the UK average of 21.4%.

These figures are supported by the Chamber's own June 2025 research, which recorded a 1.8% decline in employment and a 0.7% increase in unemployment from February to April.

Job vacancies are also falling, indicating that many employers are hesitant to hire amid uncertain economic conditions.

Contributing factors include rising costs-particularly on national Insurance, higher minimum wage requirements, and weak economic sentiment—making it harder for firms to scale or invest in their workforce.