finance

Global Pressures Weigh on Birmingham Firms Despite Local Jobs Record

Strong employment gains in Greater Birmingham give businesses some resilience even as wider international conditions create new uncertainties for local employers.

By Birmingham Business Desk · Published 25 July 2026

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Global Pressures Weigh on Birmingham Firms Despite Local Jobs Record — Photo by Andre Deak / flickr (cc0)

The employment rate for residents aged 16-64 in Greater Birmingham reached 72.2 per cent, up from 63.2 per cent in 2012 and above pre-pandemic levels, according to Office for National Statistics data accessed through birmingham.gov.uk.

Global trade tensions and shifting supply chains matter now because many Birmingham firms rely on exports and imported inputs. Local employers report that currency swings and delayed shipments already affect hiring plans and wage offers in the service and manufacturing sectors.

Job Gains Concentrated in City-Region

The city has added roughly 125,000 jobs over the last decade. Jobs located in the Greater Birmingham city-region grew by 80,000 since 2015 to reach around 880,000, Nomisweb figures show.

Youth unemployment has stayed below 10 per cent for four straight years. The share of working-age people with no formal qualifications fell to 6 per cent in 2024 from 6.5 per cent the year before, Greater Birmingham Chambers data indicate.

Wage Growth and Remaining Gaps

Average regular earnings in Birmingham rose 4.8 per cent between May and July 2025, led by public-sector and service-sector gains, according to Birmingham City Council economic information releases.

Unemployment sits at 5.1 per cent and economic inactivity at 23.1 per cent, both above national averages. These gaps mean some residents remain outside the labour market even while overall employment hits modern highs.

Local businesses can review workforce skills data from the Greater Birmingham Chambers and ONS dashboards to match training spend with the sectors showing the strongest wage growth. Monitoring national earnings releases each quarter will help firms adjust pay offers before competitors do.

This article is general information only and is not personal financial or investment advice. Consider your own circumstances and seek licensed professional advice before making financial decisions.

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