West Midlands labour market data 2026 for training providers, covering employment, unemployment, NEET levels, sector demand, AEB and ESFA funding, and how to use LMI in curriculum planning and compliance.
This 2026 overview of West Midlands labour market data helps AEB- and ESFA-funded training providers understand employment, unemployment, NEET, and skills demand across the seven metropolitan boroughs.
The West Midlands has a below-average employment rate (around 73.7%), the second-highest regional unemployment rate outside London, and NEET levels significantly above the England average, with strongest demand in advanced manufacturing, digital technology, health, and construction roles.
This section summarises 2026 West Midlands employment, unemployment, and NEET data compared with England, using ONS and WMCA sources.
Employment Rate
Unemployment Rate
NEET Rate (16-24)
Median Annual Earnings
3-Year Trend: Moderate employment growth expected in digital technology, advanced manufacturing, health, and construction sectors
Source: ONS Labour Market Statistics, WMCA Economic Data
West Midlands Combined Authority skills plans highlight digital, advanced manufacturing, health, construction, and green skills as priority sectors for 2025–26.
AEB Annual Allocation: £140M (Adult Skills Fund)
Priority Skills Areas (from WMCA Skills Strategy):
Priority Learner Groups:
Source: WMCA Commissioning Priorities 2025-26
National Context (England 2024-25):
Level Distribution (England):
Regional Focus Areas:
Common Challenges: Limited SME supervisory capacity, funding complexity, workplace readiness gaps, assessment bottlenecks
Source: DfE Apprenticeship Statistics 2024-25
Major FE Colleges:
Independent Training Providers: See WMCA provider directory for complete listings.
Major Employers (Top 10):
High Deprivation Areas (IMD Bottom Quartile):
Structural Barriers:
Provider Implications: Targeted outreach, community-based delivery, flexible scheduling, wraparound support essential
Source: MHCLG Index of Multiple Deprivation 2019
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Time-stamped records generated through Yotru can be integrated into wider learner files and audit trails, supporting more consistent documentation of employability activity and progression while helping to reduce administrative workload.
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Team Yotru
Employability Systems & Applied Research
Team Yotru
Employability Systems & Applied Research
We build career tools informed by years working in workforce development, employability programs, and education technology. We work with training providers and workforce organizations to create practical tools for employment and retraining programs—combining labor market insights with real-world application to support effective career development. Follow us on LinkedIn.
The West Midlands labour market has a below-average employment rate of around 73.7 percent and the second-highest regional unemployment rate outside London. Youth unemployment and NEET levels remain above the national average, particularly in parts of Birmingham, Sandwell, Wolverhampton, and Walsall. Demand is strongest in advanced manufacturing, digital technology, health, and construction.
This article is written for Directors of Operations, Quality, Funding, and Data leads at UK training providers delivering ESFA-funded provision. It provides labour market data and regional context to support curriculum planning, employer engagement, funding alignment, and compliance activity.
Yotru content prioritises accuracy, neutrality, and evidence-based guidance. All factual claims are verified against official ONS, DfE, and relevant regional authority sources where available. Articles are reviewed periodically to reflect labour market changes and funding rule updates. This content follows Yotru’s Editorial Policy of providing informational, non-advisory material for workforce and education professionals.
This article is for informational purposes only and does not constitute legal, regulatory, or funding advice. Training providers remain solely responsible for compliance with ESFA, DfE, UK GDPR, DPA 2018, ICO, and all other applicable requirements.
Labour market data and funding allocations are subject to change. Providers must verify current requirements through official ESFA and relevant commissioning authority publications before implementing any processes described here. This content reflects information available as of the publication date and may not reflect subsequent updates.
Providers should consult official guidance and seek independent professional advice where appropriate. External links are provided for reference only. Yotru is not responsible for third-party content or its accuracy.
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