Economic Bulletin - our latest edition - Issue 29

Welcome to the latest edition of the Staffordshire & Stoke-on-Trent Economic Bulletin produced by our Economy, Skills and Insight Teams, which provides the timeliest analysis of official Government data, national intelligence and local insights on the state of the local economy.

Alongside information on the Claimant Count and Job Vacancies that will be a part of every Bulletin, this month’s issue also provides more detailed youth claimant count analysis and updated ward level analysis of the claimant count to help identify areas which are being impacted the hardest by unemployment and a reliance on work-related benefits across Staffordshire & Stoke-on-Trent and where there may be a greater need for support. We also provide analysis of the latest business insolvency data to further understand how businesses are faring during the current economic climate.

We hope you find the Bulletin useful and welcome your comments and suggestions on further information you would like to see included in future editions to make sure that it continues to meet your needs.

If you do have any feedback please send your comments to Darren Farmer, Economy & Skills Analyst at darren.farmer@staffordshire.gov.uk.

Stay Safe,

Darryl Eyers

Director for Economy, Infrastructure and Skills
Staffordshire County Council

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Key messages this month cover

• In Staffordshire having seen improvement in the local economy and labour market following the COVID pandemic, we are now starting to see the early impact of the energy and cost-of-living crisis with unemployment, youth unemployment and dependency on work-related benefits starting to increase.
• We continue to hear of local businesses struggling to remain profitable due to a wide range of factors including high energy prices, rising interest rates, increasing wage levels and lower consumer demand due to the cost-of-living crisis. This is leading to a number of businesses having to make the difficult decision to reduce staffing costs in order to help them try to survive during these very challenging economic conditions. 
• At the same time we are starting to see a reduction in the number of job vacancies available, although they still remain high in a number of priority sectors.
• Given these changes there is likely to be increased competition for available job opportunities from both those that unfortunately find themselves unemployed but also those economically inactive and looking to re-enter the workforce due to the cost-of-living crisis.
• The Bank of England has said that it believes that inflation has peaked at a lower level than previously feared and will decline over the coming year which is clearly very welcome news for our businesses.
• The claimant rate for Staffordshire has remained at 2.7% and remains one of the lowest rates in the West Midlands and far lower than the average for England which saw a rise from 3.7% to 3.8% of the working age population.
• It is clear that there continue to be a very high number of jobs available in the local economy and the need now is to ensure that there is a strong local labour pool with skilled workers.
• Staffordshire County Council’s new Job Brokerage Service is designed to do exactly this by matching local people, employers and training providers to fill jobs and provide people with the jobs and careers they need.
• There are also clear emerging opportunities for job creation in digital (including online retail and e-commerce) and the green economy (including retrofitting homes to improve energy efficiency, electric cars e.g. Jaguar Land Rover and hydrogen e.g. JCB).
• We are continuing to prioritise support for businesses and people whose jobs or employment prospects have been impacted by the pandemic and aid the recovery, as well as putting in place the support needed locally during the cost-of-living and energy crisis.
• Staffordshire targets gigabit connectivity for residents and businesses - A drive to connect Staffordshire residents and businesses to gigabit technology over the next eight years will be coordinated by the county council. 
• New employer information and advice service – Support with Employee Health and Disability: A digital information and advice service for businesses is live on GOV.UK, providing tailored guidance on health and disability, to prevent avoidable job loss and help people thrive at work. 
• Keele University digital programme hits the hundred - A Keele University programme is set to commence its 100th Digital Advisor project this month, delivering bespoke digital support to organisations across Stoke-on-Trent and Staffordshire.
• Work has begun on a multi-million-pound Enterprise Zone development in Newcastle-under-Lyme. The Chatterley Valley West development, which will sit on the brownfield site just off the A500, will see major private sector investment and an additional £3.7million of investment through the Kidsgrove Town Deal and £3.5million from Staffordshire County Council. 
• We have heard welcomed news that inflation has continued to decline. According to the Office for National Statistics the annual rate of consumer price inflation declined to 10.5 per cent in December, from 10.7 per cent in November and further below the 41-year high of 11.1 per cent in October. • Petrol and diesel costs eased last month but food prices continued to soar, reaching the highest since 1977. Restaurants and hotel prices also jumped in December along with a record rise in air fares.
• The Government has announced that energy bill support for businesses will be reduced from April after warning that the current level of help was too expensive. Under the new scheme, which is also for charities and public sector organisations, firms will get a discount on wholesale prices rather than costs being capped as under the current one and it will run until the end of March 2024.
• There is also the very welcomed news that energy bills are predicted to fall below £2,500 from July as wholesale gas prices drop, according to analysis by Investec.
• The UK economy exceeded expectations by growing in November, boosted by the World Cup, according to figures from the Office for National Statistics. The country’s gross domestic product (GDP) rose by 0.1 per cent despite being widely expected to contract in November. • To boost the economy further the Government has announced awarded £2.1 billion for new projects in a total of 111 areas across the UK from the second round of it’s Levelling Up Fund. Staffordshire County Council has been awarded £19.8 million to invest in Mid-Staffordshire's Major Road Network to kickstart major road works in Staffordshire, including the A38 and A511, to unlock housing and improve bus lanes and journey times. Staffordshire Moorlands District Council has also secured £17.1 million to regenerate Leek Town Centre.