Birmingham's Unemployment Crisis: What the July 2026 Figures Mean for Erdington and Pype Hayes

Birmingham Continues to Have the Highest Unemployment Rate of Any Core City

Residents can view and read the report for themselves as i have attached the original Birmingham City Council document on the Birmingham City Council Website.

In July 2026, Birmingham's claimant count increased by 850 people, bringing the total number of claimants to 77,310. The city's claimant unemployment rate increased to 13.5%, compared with just 6.7% across the West Midlands and 4.9% nationally.

This means Birmingham's unemployment rate is almost three times higher than the national average and significantly higher than every other Core City in the United Kingdom. Birmingham now records a claimant rate of 13.5%, compared with Nottingham at 8.2%, Manchester at 7.9%, Liverpool at 7.3% and Edinburgh at just 3.2%.

The scale of Birmingham's challenge is further demonstrated by the fact that our city accounts for 54% of all claimant unemployment across the West Midlands Combined Authority area and 31% of all claimants across the UK's Core Cities.

Youth Unemployment Remains a Major Concern

Perhaps most worrying is the continuing growth in youth unemployment.

The number of unemployed residents aged 18–24 increased by 360 during July, bringing the city's youth claimant count to 16,030. The youth claimant rate now stands at 19.3%, meaning nearly one in five economically active young people are counted within the claimant system.

For many young residents, difficulties in accessing employment can have long-term consequences, affecting future earnings, skills development and social mobility. The continued rise in youth unemployment should be a significant warning sign for policymakers and decision-makers across Birmingham.

Employment is Falling While Vacancies Are Declining

The unemployment figures are reinforced by other indicators that suggest the labour market is weakening.

The latest Office for National Statistics employment data shows that Birmingham's working-age employment fell by 2,400 residents during the first quarter of 2026, leaving 504,800 people in employment. Birmingham's employment rate has fallen to 66.8%, compared with 73.0% across the West Midlands and 75.1% nationally.

At the same time, the number of online job adverts posted in Birmingham fell by 595 during June 2026 to 13,312 vacancies, representing a reduction of 4.3% in a single month.

Taken together, these figures suggest that unemployment is rising at precisely the same time as the number of available opportunities is reducing.

The Continuing Skills Challenge

The report highlights an issue that many of us have been raising for years.

Only 64.8% of Birmingham residents hold qualifications at RQF Level 3 or above, compared with 68.9% nationally. Meanwhile, 9.3% of Birmingham's working-age population have no qualifications at all, significantly above the UK average of 6.4%.

Skills gaps continue to limit employment opportunities for many residents and place Birmingham at a disadvantage compared with other major cities.

Erdington Constituency: Fifth Highest Unemployment Rate in Birmingham

Turning to the constituency-level figures, Erdington remains among Birmingham's most challenged areas.

The constituency recorded:

• 8,335 claimants
• A claimant proportion of 10.3%
• An increase of 110 claimants during July
• A rise of 0.1 percentage points over the previous month

Among Birmingham's ten parliamentary constituencies, Erdington ranks fifth highest for unemployment. The only constituencies with higher claimant proportions are Perry Barr, Ladywood, Hall Green and Moseley, and Yardley. Erdington therefore remains above the Birmingham average and more than double the national average.

A Closer Look at Erdington's Wards

The constituency figures reveal significant differences between individual wards.

Gravelly Hill

Gravelly Hill records the highest unemployment rate within the constituency at 14.2%. It also shares the highest youth unemployment rate in Birmingham at 19.0%.

Stockland Green

Stockland Green records 2,130 claimants and a claimant proportion of 12.9%, making it one of the most significant unemployment hotspots in Erdington Constituency. Youth unemployment stands at 17.4%.

Erdington Ward

Erdington Ward itself records 1,475 claimants and a claimant proportion of 10.3%. Youth unemployment stands at 16.8%.

Kingstanding

Kingstanding records a claimant proportion of 10.1% and youth unemployment of 16.4%. The ward experienced an increase of 45 claimants during July.

Pype Hayes

Pype Hayes currently records:

• 625 claimants
• A claimant proportion of 8.7%
• An increase of 35 claimants during July
• A rise of 0.5 percentage points
• 120 youth claimants
• A youth claimant proportion of 13.7%
• An increase of 10 young claimants during July

Castle Vale

Castle Vale records 510 claimants and a claimant proportion of 8.0%, although youth unemployment remains elevated at 14.5%.

What Concerns Me About Pype Hayes

Whilst Pype Hayes is not currently among Birmingham's highest unemployment wards, several emerging trends deserve attention.

Most notably, the ward experienced one of the sharper month-on-month increases across Birmingham, with claimant numbers increasing by 35 and the claimant proportion rising by 0.5 percentage points in just one month.

Youth unemployment is also moving in the wrong direction, with the number of unemployed young people increasing by 10 during July and the youth claimant proportion increasing by 1.1 percentage points.

These increases may indicate growing pressure on families and could lead to greater demand for support services, employment assistance, training programmes, debt advice and community-based interventions if the trend continues.

The Wider Impact on Erdington

The unemployment figures are not simply statistics.

Behind every claimant count is an individual or family facing uncertainty. Rising unemployment can place pressure on household finances, local businesses, schools, housing services, healthcare providers and community organisations.

The July 2026 figures show that unemployment is increasing across much of Birmingham, but the impact is particularly significant in parts of Erdington Constituency where long-standing challenges relating to skills, worklessness and deprivation continue to affect residents.

Final Thoughts

The July 2026 unemployment report should serve as a wake-up call.

Birmingham continues to have the highest claimant unemployment rate of any Core City in the United Kingdom. Employment has fallen, vacancies have declined, and youth unemployment continues to rise. Whilst changes to Universal Credit eligibility categories have contributed to some of the increase in claimant numbers, the wider labour market indicators suggest that genuine economic challenges remain.

For Erdington Constituency, the figures show an area still facing significant employment challenges. For Pype Hayes, the data suggests that whilst unemployment remains below some neighbouring wards, recent increases in both overall and youth claimant counts merit close monitoring.

As your local Councillor, I will continue to support initiatives that improve skills, create opportunities, encourage investment and help residents access employment, apprenticeships and training. Economic growth must reach every part of our constituency, and no community should be left behind.

Councillor Danny Carter Member for Pype Hayes Ward Birmingham City Council