The West Midlands needs to address its dismal employment rates

Birmingham looking festive. Image: Getty.

With the Midlands Engine policy, Joseph Chamberlain’s legacy being back in vogue and – perhaps most notably – CityMetric’s recent tour around the area, the West Midlands is finally getting the attention it deserves. Over the next few months, the run-up to the election of a metro mayor in the West Midlands Combined Authority (WMCA) should mean even more thought is given to what’s needed to help the region thrive.

And top of that list should be turning around its dismal employment performance.

The West Midlands’ rusty jobs machine isn’t a new problem, as a report published this week by the Resolution Foundation highlights. In the years leading up to the financial crisis, the conurbation’s employment rate remained stubbornly low compared to other city regions.

And while the recovery has seen the proportion of people in work nationally rising to record levels, the West Midlands still hasn’t got back to where it was, with an employment rate of just 64.5 per cent compared to 71.6 per cent across all the city regions.

The WMCA is made up of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton – diverse areas with different histories and populations. But bar Solihull, each of those local authorities has an employment rate below the average across the UK’s other city regions. A cross-city plan is needed.

The big challenge for the new mayor, along with other local leaders and central government, is helping people from groups that have traditionally been disadvantaged in the labour market to find work. That doesn’t mean that we should expect, say, people with disabilities to have identical employment rates to the rest of the country. But the gap between the kinds of workers who tend to be in employment whatever the economic weather – in their thirties or forties, highly-educated – and these disadvantaged groups is significantly larger in the WMCA than in other city regions. Targeted support designed to help some of those groups that fare worst in the the region – younger workers, those with low qualifications and people from BAME backgrounds – could make a meaningful contribution.

Of course, it’s not enough to just think about potential employees: the kinds of jobs and sectors setting up in the city region are crucial too. The WMCA can be rightly proud of its industrial heritage, still evident today with companies like Jaguar Land Rover. And while a higher share of the WMCA’s workforce are employed in manufacturing, it’s still only 13 per cent. The city region should also look to expand into more “jobs-rich” areas such as the high value services sector. When it comes to industrial strategy, it should be proud of, but not constrained by, its past.


And hand in hand with attracting those sorts of jobs is having workers with the right skills. Qualification levels in the WMCA are below average. Despite having one of the highest proportions of students among city regions, it has trouble retaining them once they graduate, with fewer staying on than in Bristol or Manchester. More high-skilled jobs would help – but it’s worth thinking too about what those other “stickier” cities offer and how the WMCA can mark itself out and tap into the asset of its large student population.

While the mayor will have powers that can make a real difference, a shared focus with central government and other leaders in the West Midlands will be needed to boost employment. But with a targeted, ambitious plan that puts jobs growth at its heart, there’s every reason to hope that the West Midlands will be talked about for all the right reasons for years to come.

Conor D'arcy is a policy analyst at the Resolution Foundation.

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Treating towns as bastions of Brexit ignores the reasons for the referendum result – and how to address them

Newcastle: not all cities are booming. Image: Getty.

The EU Referendum result has often been characterised as a revolt of Britain’s “left-behind” towns and rural areas against the “metropolitan elite”. But this view diverts attention from the underlying issues which drove the Brexit vote – and ironically has diverted policy attention away from addressing them too.

It’s true that a number of big urban authorities, led by London, voted to stay. And overall people living in cities were less likely to vote leave than towns. Setting aside Scottish cities and towns, which both voted very strongly for remain, Leave polled 51 per cent of the vote in English and Welsh cities, compared to 56 per cent in local authorities that include towns. (Consistent data isn’t available below local authority level.)

Yet there is a lot of variation underlying this average across towns. In Boston, 75 per cent voted Leave, and in Hartlepool and Grimsby it was 70 per cent. But at the other end of the scale, there were a number of towns that voted to stay. For example, Leave polled at 49 per cent in Horsham and Harrogate, and 46 per cent in Windsor and Hitchin. In places such as Winchester, Leamington Spa and Bath, the Leave voted amounted to less than 42 per cent of the vote.

What drives this variation across towns? Data from the Centre for Cities’ recent report Talk of the Town shows economic outcomes were the biggest factor – with towns that voted Remain also having stronger economies.

For a start, pro-Remain towns generally have smaller shares of people who were either unemployed or claiming long-term benefit. (This is based on 2011 data, the latest available.)

Towns which voted Remain also had a higher share of jobs in high-skilled exporting businesses – an indication of how successful they have been at attracting and retaining high-paid job opportunities.

And both measures will have been influenced by the skills of the residents in each town: the higher the share of residents with a degree, the stronger the Remain vote.

So the Brexit vote was reflective of the varying economic outcomes for people in different parts of the country. Places which have responded well to changes in the national economy voted to Remain in the EU, and those that have been ‘left behind’ – be they towns or cities – were more likely to have voted to Leave.

This sends a clear message to politicians about the need to improve the economic outcomes of the people that live in these towns and cities. But the irony is that the fallout from the Brexit has left no room for domestic policy, and little progress has been made on addressing the problem that, in part, is likely to have been responsible for the referendum outcome in the first place.

Indeed, politicians of all stripes have seemed more concerned about jostling for position within their parties, than setting out ideas for domestic policy agenda. Most worryingly, progress on devolution – a crucial way of giving areas a greater political voice – has stalled.


There was talk earlier this year of Theresa May relaunching her premiership next summer focusing on domestic policy. One of her biggest concerns should be that so many cities perform below the national average on a range of measures, and so do not make the contribution that they should to the national economy.

But addressing this problem wouldn’t ignore towns – quite the opposite. What Talk of the Town shows is that the underperformance of a number of cities is bad not just for their residents or the national economy, but also for the residents in surrounding towns too. A poorly performing neighbouring city limits both the job opportunities open to its residents and impacts on nearby towns’ ability to attract-in business investment and create higher paid jobs.

This isn’t the only factor – as the last chart above suggests, addressing poor skills should be central to any serious domestic policy agenda. But place has an influence on economic outcomes for people too, and policy needs recognise that different places play different roles. It also needs to reflect the importance of the relationships between places to improve the access that people across the country have to job opportunities and higher wages.

The Brexit vote didn’t result from a split between cities and towns. And if we are to address the reasons for it, we need to better understand the relationship between them, rather than seeing them as opposing entities.

Paul Swinney is head of policy & research at the Centre for Cities, on whose blog this article first appeared.

Read the Centre’s Talk of the Town report to find out more about the relationship between cities and towns, and what this means for policy.