Business leaders in Birmingham and Solihull are urging the government to do more to support companies as the latest figures show the West Midlands has the largest unemployment increases in the country.

While recent reports suggest green shoots are appearing in the UK economy, today's unemployment figures strongly demonstrate that recovery is a long way off.

Kiran Virk, policy adviser at the Birmingham Chamber of Commerce and Industry, said: "The Government announced earlier this year, that employee, employer and self-employed National Insurance contributions will increase by 0.5 per cent from April 2011.  This is ultimately a tax on salaries and employment, representing an extra cost to business and a deterrent to taking on staff.

"Unemployment in the West Midlands has reached 282,000, an increase of 33,000, in the months between May and July this year.  This equates to 10.5 per cent of the working age population in our region who are currently out of work.   

"Again this quarter we have seen the 16 - 24 year old continuing in the struggle to find work - nationally there are 947,000 young people currently unemployed. 

"Figures for the West Midlands are the real indication of what is happening in the economy.  The prospect of increasing unemployment and a lack of job security continues to suppress demand. Businesses are cautious as to when growth will return and this is reflected in the low recruitment intentions amongst firms.

"Companies are already bringing an end to overtime, a decrease in salaries and a reduction in working hours in an attempt to maintain current staff levels.  

"More encouragement is needed from the government to start a new wave of recruitment and bring an end to these horrific unemployment figures."