Business News Business News Latest news from Greater Birmingham Chambers of Commerce
The battle to recruit staff is still going on...
Huge recruitment problems persist for companies across the West Midlands, a Chambers of Commerce economic report reveals. Sixty-four per cent of businesses said they
were now struggling to find new staff, an increase of 14 per cent since the start of last year. The West Midlands Economic Snapshot for
the last quarter of 2018, was produced by Greater Birmingham Chambers of Commerce on behalf of the Black Country Chamber of Commerce and Coventry & Warwickshire Chamber of Commerce. The region’s manufacturing sector was
worst hit with 74 per cent struggling to recruit while the service sector experienced a seven per cent increase to 60 per cent. Only 21 per cent of all companies across the
region expected their international output to go up over the next three months - a three per cent decrease compared to the previous quarter. Sixty-five per cent said their overseas
orders stayed the same for Q4 whereas 14 per cent of all businesses expected them to fall in the upcoming months. Overall, 57 per cent expected their profits to go up in the next 12 months. However, business confidence remained
high with 57 per cent of all firms expecting their profits to increase in the next 12 months. The highest proportion of firms expecting a
fall in their profits were based in Coventry and Warwickshire (15 per cent) whereas the largest proportion of firms expecting an uplift in profitability were based in the Black Country (71 per cent).
Paul Faulkner (pictured), chief executive of
the GBCC, said: “It is disappointing to see almost three quarters of manufacturers surveyed suffering problems in attempting to find staff. “Analysis from the ONS revealed that the
West Midlands has seen a drop in regional employment levels over the last six months, but we shouldn’t lose sight of the great strides that have been made in tackling structural unemployment over the last three years.”
...and job figures
also cause concern Business leaders say the rise in West Midlands unemployment is becoming a “concerning trend” after new figures revealed an increase of 0.2 per cent. The region’s unemployment rate jumped to
5.2 per cent between October and December 2018, despite the national figure falling to 4 per cent. The West Midlands also suffered a sharp
decrease in employment, having fallen by 1.1 per cent since the previous quarter. This was the largest decrease of any UK
region and follows a period of high estimates at the beginning of last summer when West Midlands employment was at a record high. Greater Birmingham Chambers of Commerce
say Brexit uncertainty may have made businesses reluctant to invest in their workforce. Chief executive Paul Faulkner said: “The unemployment rate in the West Midlands sits well above the national average, and increases in regional unemployment are quickly becoming a concerning trend, especially given the national fall in unemployment. “What is clear is that local stakeholders need
to be working across the country and implementing approaches from regions consistently increasing employment opportunities for their residents. “Equally, with less than 30 days until Brexit,
the government urgently needs to provide clarity to businesses on potential scenarios and appropriate workforce planning. With uncertainty currently at its peak, many organisations are understandably tentative about making investments in their staff. “However, in times of uncertainty it is more important than ever to develop our people, including their leadership and people management capability, for dealing with new and uncertain situations.”
March 2019 CHAMBERLINK5
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