THE West Midlands economy (GVA) shrunk by around nine per cent in 2020 from £106bn to £97bn and it is not expected to regain its previous size until 2022.
That’s the headline figure from a ‘State of the Region 2020’ report commissioned by the West Midlands Combined Authority and its partners into the impact of the pandemic on communities in the region.
It also found pre-pandemic levels of employment may not return until 2023 with the region’s unemployment claimant count almost doubling last year, hitting young people hardest. New apprenticeships also fell by almost 19 per cent to 25,800.
But the research, by the University of Birmingham-based West Midlands Regional Economic Development Institute, also found signs of encouragement.
Forecasting models show relatively strong regional growth in 2021, and latest forecasts have been revised upwards.
Those with qualifications has improved markedly over the last year with 36 per cent now qualified to NVQ4+, an increase of ten per cent, its highest level since records began.
The report says the region has demonstrated amazing resilience in the face of the pandemic, with many businesses managing to adapt, pivot and prosper.
Next year’s Commonwealth Games will also provide an opportunity to tackle issues in the region’s hardest hit sectors, especially hospitality.
The report also draws on previous research set out in the Health of the Region report which showed how social inequalities, especially around health and wealth, have been exacerbated.
It shows the West Midlands has the UK’s highest fuel poverty rate (17.5 per cent) and that overall deprivation is high with 34.5 per cent of local neighbourhoods in the top ten per cent most deprived areas nationally.
Andy Street, Mayor of the West Midlands and chair of the WMCA, said: “There is no question the pandemic has hit us exceptionally hard.
“That’s why we’re pressing on with our practical plans to get the West Midlands back on track.
“We’re continuing to develop derelict industrial land, helping to turn eyesore sites into new affordable homes for families or commercial space to help create new jobs
“We are in a difficult position right now, but I want residents to know we are utterly determined to get this region back on top once again.”
The report will be presented to the WMCA Board this Friday June 25.
