West Midlands to suffer in recession

New research by the University of Warwick Institute for Employment reveals that the West Midlands, Warwick’s own region, is suffering under the recession more so than any other region.

This research also indicates that the region will take the longest to recover after the recession.

According to the Warwick Institute for Employment Research (IE), which has worked in conjunction with the Cambridge Econometrics, unemployment in the region has begun to accelerate at a faster rate than the national rate.

In June 2009, the West Midlands had the highest rate of unemployment in the United Kingdom.

The study has used the latest information on the claimant rate to show the current rate of unemployment and predict future rates.

The IE has argued that the recession is not the sole reason for the problems in the West Midlands labour market but has exacerbated it.

The reason why the recession has affected the region so severely is due to the region’s dependence on industries which have proven to be vulnerable in the struggling economy, such as the automotive industry.

The IE’s research not only shows the current impact on the region, but also indicates the recovery of the West Midlands too.

The study indicates that by 2020 employment in manufacturing will continue to decline, though not as severely as in the 2000s, and employment in construction and non-marketed services will grow.

Over the medium term of the recession, unemployment is expected to remain at “relatively high levels” according to the IE, and it is expected that by 2020 the pre-recession levels of employment will not have been recovered either.

While the study is ongoing and not conclusive, it is clear that the West Midlands is bearing the brunt of the recession and the region’s economics partners.