Why Birmingham’s economic growth has been slower than the national average
AUSTRALIA’S economic growth is slowing and the national unemployment rate has hit a new peak of 6.1 per cent, a report from the University of Birmingham says.
The report, released today, also shows the unemployment rate is also set to reach a peak of 7 per cent in 2018.
In Birmingham, where unemployment hit 6.2 per cent last year, the national rate was 6.3 per cent.
The University of Alabama report is based on the latest available data from the Bureau of Statistics, which was released today.
Birmingham’s unemployment rate peaked at 6.5 per cent at the start of the year.
However, the rate is expected to decline to 6.0 per cent by 2023, as the national economy continues to grow and the city becomes a global hub for technology and other industries.
Data from the Australian Bureau of Agricultural Statistics showed Birmingham’s unemployment fell to 9.4 per cent on January 1, 2018, down from 10.6 per cent the previous month.
Professor David Curnock, from the Department of Economics at the university, said Birmingham’s overall job creation had been stronger than the regional economic output in the previous two years, when Birmingham’s economy grew by 6.7 per cent and the regional unemployment rate fell to 5.5.
“This means Birmingham’s job creation and unemployment has been much higher than the overall regional output, and in some cases, higher than even the national performance,” Professor Curnocks said.
He said the Birmingham data showed that Birmingham’s city was one of the fastest growing regional cities in the country, which meant that the city was producing more than its share of the regional GDP.
“[The] jobs in Birmingham are more than offset by the jobs lost elsewhere in the state,” Professor Crumpton said.
Professor Curnicks analysis also showed that the number of people living in Birmingham has risen by 1.9 per cent since the start to 2020.
Mr Curnoks findings are in contrast to Professor Graeme Larkin from the Institute of Business, Innovation and Skills at the University, who has warned about Birmingham’s growing population over the past year.
“We’ve been in a real downturn in the labour market in the city of Birmingham,” he said.
“It is not just a housing issue but a real issue of lack of demand.”
Birmingham has become a city of ageing people and people in need, but the growth in the population is also outstripping the increase in the workforce.
“Professor Crumptons report comes as a new report shows Birmingham is becoming a hub for IT and other businesses in the next decade.
More than 6,000 new jobs were created by the city in the past 12 months, the latest figures from the Greater Birmingham Regional Council show.
It also shows Birmingham’s regional economy has grown by 2.9 million jobs since 2020.