Unemployment has fallen by 88,000 in the 3 months to April, to 2.43 million. The fall reduced the  national unemployment rate from 7.9% to 7.7% and represents the fastest three month fall since the summer of 2000. The fall was caused by a continuing rapid growth in private sector jobs which has more than outweighed the fall in public sector jobs. In the past year private sector employment has grown by 520,000, compared to a fall in public sector employment of 143,000 leaving overall employment up 376,000.

While its early days, the fall appears to represent a significant vindication of the Coalition Government’s economic policies. By showing clear determination to cut the huge national budget deficit over a realistic timescale, the government has allowed interest rates to stay very low and has generated sufficient confidence in the economy to encourage the private sector to hire half a million more staff.

Within the unemployment figures there has been a significant shift of claimants to Job Seekers Allowance (JSA), from other out of work benefits (such as incapacity benefit) and this means that despite the size of the fall in unemployment, JSA figures are rising.

Given this shift the unadjusted rise in Birmingham’s JSA claimant level of just 51 in May, to 47,443 (11.7%),  clearly indicates that overall unemployment in our city is falling.

Acocks Green continues to do better than the city as a whole, with a fall of 13 in undjusted JSA claimant rate to 1,157 (a rate of 10.3%). This is 51 less than a year ago.

With major investment in the UK car industry announced last couple of weeks by BMW and Nissan  (including a major engine factory to be built in the West Midlands), to add to Jaguar Land Rover’s expansion plans, the outlook is positive for further growth in employment in our region in coming years.