THE unemployment rate in Redditch has more than doubled in just seven months due to the impact of Covid-19.
And with the government’s furlough scheme ending this Saturday, October 31, there are fears these figures could get much worse.
The shock figures were revealed to members of the Borough Council’s executive committee on Tuesday evening in a report from North Worcestershire Economic Regeneration Development.
Members heard the number of people aged 16+ claiming out of work benefits in the town increased from 1,550 in February 2020 to 3,355 in August 2020.
Over almost the same period, from March to September, the rate of job vacancies had fallen 35 per cent in the borough, although since August this had started to recover.
The report also revealed that Redditch has some 15,500 residents on the government’s furlough scheme – a take up rate of 36 per cent of those eligible – which ends this month, to be replaced by a new job support scheme for the next six months.
Councillor Bill Hartnett (Lab, Church Hill) said: “The figures in this document are very scary.
“It’s a tough jobs market and at the same time there’s been a high take up of the furlough scheme in Redditch, which is good as many people are taking advantage of the scheme, but on the other hand, in a worst case scenario, many of these people could be made redundant.
“That’s the kind of figures we are looking at.”
Councillor Mike Rouse (Con, Church Hill) said the unemployment rate could hit levels last seen when MG Rover collapsed.
“When it comes to large businesses Redditch is at the top of the table and it’s in small businesses that we fall behind.
“Yet it is small businesses that are the quickest to react and we really have to do everything we can to unlock the potential of small business, encourage young people to set up socially responsible businesses in the town so they can build resilience here in Redditch.”
The figures were produced as part of the Redditch Economic Recovery Framework which is focusing on three main areas, Supporting people, Supporting businesses and Improving places.
These cover boosting people’s skills, highlighting employment and training opportunities to residents, and growth and start-up support for businesses.
Improving places focuses on making Redditch a more attractive place to do business and to spend leisure time.
