West Midland unemployment figures show a fall by 8,000, equal to
10.1% of the working age population, but are not a true reflection
of the economic situation.
Kiran Virk, Policy advisor at Birmingham and Solihull Chamber of
Commerce and Industry (BCI) said: "In the build up to Christmas
many firms take on part time staff to deal with the busy period and
the rise in employment is due to an increase in part time
jobs."
It is thought that over 1 million people are now working part
time because they cannot find a full time position.
Ms. Virk said: "The decision by the Chancellor, in last week's
Pre Budget Report, to further increase all National Insurance
contributions by 0.5% is nothing short of a tax on employment. It
will only serve to make firms think twice before employing
someone."
In a recent survey by the Chamber, 63% of members reported that
employment costs are the biggest deterrent to hiring new staff.
Latest figures show that unemployment stands at 274,000 - equal
to 10.1% of the working age population.