Ladywood is first place in the UK where unemployment claims pass 10 per cent

Birmingham Ladywood has become the first constituency in the country where more than one in ten people of working age are claiming unemployment benefits, as the recession tightens its grip.

The claimant count rate in the inner-city seat passed 10 per cent in January, the first time any part of the UK has reached that level in the current downturn.

The hardest hit

Ladywood, which covers the city centre and neighbouring inner-city areas including Aston, Nechells, Soho and Ladywood itself, already had some of the highest unemployment in the country before the recession began. Last July, by the international measure, which is usually higher than the claimant count, its unemployment rate was just over 18 per cent, the highest in the region.

By comparison, the rate in neighbouring Perry Barr was 8.1 per cent, in Sparkbrook and Small Heath 13.9 per cent, and in Yardley 7 per cent.

A deepening recession

The figures reflect the speed with which the downturn is hitting jobs. The collapse of banks and the credit crunch last year have pushed the economy into recession, and businesses across the country are cutting jobs and holding back on hiring.

Manufacturing, still an important part of Birmingham's economy, has been hit particularly hard as demand for cars and other goods has fallen. Retailers and construction firms are also struggling, and several major developments in the city centre have been delayed or put on hold.

A diverse, young community

Ladywood is one of the most diverse constituencies in the country. At the 1991 census, more than half of its population came from ethnic minority backgrounds, the highest proportion in England at the time. It has a young population, and many residents have few qualifications, which makes it harder for them to find work when jobs are scarce.

Calls for action

Local politicians and community groups are calling for more help for people who have lost their jobs, including training schemes and support for young people leaving school and college. There are fears that a generation of young people could be left without work for long periods, with lasting consequences.

The government has announced measures to support the economy, including a temporary cut in VAT and help for people who lose their jobs, but economists expect unemployment to keep rising for some time.

A city of contrasts

The figures highlight the contrasts within Birmingham. The constituency includes the gleaming office blocks, shops and apartments of the regenerated city centre, but also some of the most deprived neighbourhoods in the country, just a short walk away.

For many people in those neighbourhoods, the boom years brought few benefits, and the recession is now making life harder still. The challenge for the city will be to make sure that when the economy recovers, the jobs reach the people who need them most.