Impact of Recession on West Midlands Population
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The document discusses the impact of the recession on the West Midlands region of the UK. It finds that the unemployment rate in the region has widened compared to England as a whole. The West Midlands now has a higher unemployment rate than any other UK region. Young and unskilled workers have been worst affected by the recession in the region. Over 10% of young people are now claiming unemployment benefits and sickness benefit claimants have outnumbered unemployment benefit claimants for 15 years. Rates of volunteering are also low in the region, especially in areas with high unemployment.
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Impact of Recession on West Midlands Population
- 1. The impact of the recession on the population of the region Helena Duignan West Midlands Regional Observatory October 2009 West Midlands Regional Observatory 2009
- 2. The gap between the region’s unemployment rate and England’s has widened Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data) Gap = 2.5
- 3. The region’s unemployment rate is now higher than any other region Source: Office for National Statistics (Labour Force Survey, seasonally adjusted data) West Midlands Regional Observatory 2009
- 4. Young and unskilled worst affected by recession Source: LFS 2009 West Midlands Regional Observatory 2009
- 5. More than 1 in 10 young people are now claiming Jobseekers Allowance West Midlands Regional Observatory 2009 Source: Office for National Statistics (claimant count, September 2009)
- 6. Sickness benefit claimants have outnumbered unemployment benefit claimants for around 15 years West Midlands Regional Observatory 2009
- 7. © Crown Copyright and database right [2009]. All rights reserved. Ordnance Survey Licence number 100030383. Advantage West Midlands, September 2009 West Midlands Regional Observatory 2009 Rates of volunteering are low, and lowest in areas of high worklessness Source: Place Survey 2008
Editor's Notes
- There are now 185,900 people in the West Midlands claiming Jobseeker's Allowance (the unemployment benefit). This is an increase of over 75,000 claimants on the same period a year ago Regional employment may settle at lower rate than pre-recession – recovery is uncertain
- The West Midlands has the highest unemployment rate of any English region with the rate of 10.4% being nearly one percentage point higher than any other English region and much higher than the average rate for England (7.9%). There are 114,000 more unemployed people in the region than there were at the beginning of 2008, taking the total to well over a quarter of a million unemployed (281,000). The West Midlands has been the worst affected of all the regions with unemployment increasing by more in this region (4 percentage points) than any other over the year to August 2009:
- Young people (aged 16–24) have seen the biggest falls in employment and biggest rises in unemployment of any age group and compared to any of the other demographic groups. Their unemployment rate has risen by 8 percentage points over the year to March 2009 and now stands at 23.4%. More than one in 10 young people aged 18 to 24 are now claiming Jobseeker’s Allowance in the region. The employment and unemployment rates of people with no qualifications have seen the second largest deterioration of all the demographic groups after young people. Only 42% of people without a qualification are now in employment, compared with 48% a year ago. Their unemployment rate increased by 5.8 percentage points to 17.5%, nearly double the increase for people with a qualification (2.9 percentage points).
- Sept 2009 – over 57,000 young people claiming JSA in the region – 11%. Increase from 36,000 in Sept 08. 31% of people claiming JSA are 18-24. ILO unemployment would be much higher. Increase greater than any other demographic group. Of 75,000 new claimants 21,000 are YPs.
- Long-term problems for the region: 239,000 people claiming IB. 90 per cent of IB claimants have been claiming for longer than a year and 60 per cent for more than five years. 40% for MH and 20% for musculo-skeletal These data are from the EI baseline report and are for 2007.
- 4 out of 14 LAs have NI6 in their LAA. Rates of volunteering are third lowest in the region, and within the region vary from 16% in Stoke (17 Bham/Sand) to 33% in Malvern Hills (Wych/Shrops)