Business News Business News Latest news from Greater Birmingham Chambers of Commerce Employment
is on the rise Unemployment in the West Midlands has plummeted in the quarter ending in September 2016, thanks to a booming local economy which is continuing to get stronger and create more jobs. New figures from the Office for
National Statistics show that nationally, unemployment has fallen to an 11-year low, in the three months to September. The West Midlands has been the
UK’s best performing region on the jobs front, recording a 1.5 per cent increase in the employment rate, which, at 73.4 per cent, is marginally lower than that of London. The West Midlands employment
rate is the highest it has been for ten years, and it is a similar story for the unemployment rate, which is at its lowest since the first quarter of 2006. The current unemployment rate
in the region has fallen to just 5.2 per cent, which is lower than the North West (5.3 per cent) and London (5.6 per cent). Greater Birmingham Chambers
of Commerce chief executive Paul Faulkner said: “These labour market statistics highlight another period of excellent progress for the West Midlands. “Whereas historically we have
struggled to make up ground on national labour market performance, today’s figures see us surpassing a number of regional counterparts and importantly bring us within touching distance of national averages. “However, with employment
levels rising, employers are now having to recruit from a smaller talent pool. Our latest Quarterly Business Report identified that approximately 60 per cent of firms had faced difficulties recruiting in quarter three. An effective way to address these skills gaps is through training apprenticeships. “A wide array of apprenticeship
reforms are set to come into effect from April next year. It is vital that business leaders of all shapes and sizes look ahead and understand how they might be impacted by the reforms as well as the opportunities that will be available to them. We would encourage all business leaders to attend the GBCC’s apprenticeship events or get in touch with us to find out more.”
More must be done to demystify the new levy
The Government has announced the full details of the Apprenticeship Levy, which is due to be launched next April.
Businesses have been made aware for some time
now that the Levy is being introduced, but this is the first time the finer points of it have been confirmed. The Levy will be introduced from 6 April 2017, and is
aimed at increasing the number of apprentices that UK employers take on each year. The Levy is set at 0.5 per cent of a businesses’ pay
role, but only employers whose salary bill adds up to more than £3 million will pay the Levy – this is only a small percentage of British businesses.
‘It is good to see that the Government is listening to employers and the further education sector’
However, all businesses need to understand the
Government’s apprenticeship reforms, because it includes funding initiatives which employers can take advantage of if they take on new apprentices, particularly those from disadvantaged backgrounds. This funding includes a 90 per cent contribution
towards apprenticeship training costs for non-Levy payers, and 100 per cent funding for smaller businesses of the training costs of 16 to 18-year-olds, or 19 to 24- year-olds from disadvantaged backgrounds. Birmingham Chamber is fully backing the new
proposals, but says a lot remains to be done to educate
employers about the system. Chamber policy adviser Elliot Mason said: “Our
recent Workforce Survey highlighted that 37 per cent of West Midlands businesses hadn’t heard about, or had no understanding of, the Apprenticeship Levy. “It is good to see that the Government is listening to
employers and the further education sector in taking steps to soften the impacts of their reform proposals. “For our part, the GBCC will be working closely with
our members and key stakeholders in the coming months to share critical information about the apprenticeship reforms and provide guidance. Keep an eye on our events calendar and daily e-news for further information.”
• Read more on apprenticeships and skills on p56/57 Second phase gets confirmation
Elliot Mason: still a great deal to be done to educate employers
Business leaders in Birmingham have welcomed the Government’s announcement of the second phase of HS2. The Government has confirmed its preferred route
for phase two of the project, which will connect the West Midlands with Manchester and Leeds. The first phase – which will run from London to
Birmingham – is expected to gain Royal Assent shortly. Greater Birmingham Chambers of Commerce chief
executive Paul Faulkner said the northern part of the route was crucial to provide connectivity for all of the country’s major cities. He said: “While finalising the Birmingham to London route and securing Royal Assent remains hugely
6 CHAMBERLINK December 2016/January 2017
important, HS2 has always been about the bigger picture for businesses here in the West Midlands. “Realisation of a network connecting our major
cities is how businesses will see the true benefits of HS2 in the future, and we are delighted that Birmingham will be at the heart of that network.” Transport Secretary Chris Grayling confirmed the
majority of the preferred route from Crewe to Manchester and Birmingham to Leeds. The first planned services from London to Birmingham are expected to commence in 2026, with services running to the northern cities from 2033. The Government also announced a new £900
million contract awarded for preparatory work for the West Midlands to London route.
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