Unemployment rate jumps to 4.5% in West Midlands, new government figures show

New figures from the government's data provider the Office for National Statistics showed 4.5 per cent of people in the West Midlands were unemployed, a rise of 0.2% since December.

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The overall employment rate fell from 74.2% to 72.7%, which was the largest drop of any region in the UK, while the amount of people described as "economically unactive" aged between 16 to 64 years old rose by 1.6%.

Critics of the government's policies on employer national insurance contributions and national minimum wage, both of which rose in April, said they were being proven correct as the number of job vacancies also fell across the country - an indication that the rate at which employers are taking on new staff was falling.

The estimated number of vacancies in the UK fell by 42,000 on the quarter, to 761,000 in February to April 2025. This represents the 34th consecutive quarterly decline, with quarterly falls seen in 13 out of the 18 industry sectors. 

Vacancies were 34,000 below their January to March 2020 level.

Across the nation, the UK unemployment rate for people aged 16 years and over was estimated at 4.5% in January to March 2025, above estimates of a year ago, and the highest for over four years.

The UK Claimant Count for April 2025 increased on the month and the year, to 1.726 million.

The highest employment rate in the UK was in the South West (79.9%) and the lowest was in the North East (68.0%), while the highest unemployment rate was in London (6.2%) and the lowest was in Northern Ireland (1.6%).

Danni Hewson, Head of Financial Analysis at AJ Bell, said: “Ever since last year’s Budget shocked employers with a chunky increase to national insurance, businesses have been warning that increased labour costs would impact their ability to hire and retain staff.

“The latest figures from the Office for National Statistics appear to show those warnings had merit, though the organisation continues to warn about the validity of these figures due to low engagement. Unemployment is up, vacancy numbers have dwindled to significantly below where they were before the pandemic and wage growth has slowed."

The Office for National Statistics (ONS) said the latest official figures showed further signs of a “cooling” labour market, with average regular earnings growth falling to 5.6% in the three months to March.

But wages still outstripped inflation, rising by 2.6% higher after taking Consumer Prices Index inflation into account.

Liz McKeown, ONS director of economic statistics, said: “Wage growth slowed slightly in the latest period but remains relatively strong, with public and private sectors now showing little difference.

“The broader picture continues to be of the labour market cooling, with the number of employees on payroll falling in the first quarter of the year.

“The number of job vacancies has also fallen again, with the rate of decline increasing in the last few months.”

Meanwhile the Government said it would continue to "invest in British industry" to get more people back into employment, following the publication of its proposals to reform employment, health and skills support to tackle economic inactivity and support people into work late last year.

“Real wages are growing with around 200,000 more people into work since the publication of our Get Britain Working plan," said Minister for employment Alison McGovern.

“But we know that the Government’s plan for change needs more workers – in every part of our country.

“That’s why we will continue to change Jobcentres, invest in British industry and get help to those who need it until everyone who can work has got a decent job and a good income.”