Economic bulletin

View our latest economic bulletin.

We are ambitious for the economy of Staffordshire, our businesses, and people. The impacts of global events continue to be felt on the local, national, and global economies and cannot be ignored. However, the county council, Government, and our partners, will continue to support Staffordshire’s residents and businesses through challenging times, ensuring we are well-placed to deliver a more resilient, more dynamic and more productive local economy.

Our ambitious Economic Strategy is our roadmap to delivering our ambitions for the Staffordshire economy, where our existing business are helped to grow, new businesses are established and thrive, our residents have the skills needed to access the jobs of the future and our towns across the county are supported to be places we can all be proud of.

An Employment and Skills Strategy 2023-2030 has been developed to support this and can be used to guide future employment and skills work programmes, to enable effective communication of Staffordshire’s shared employment and skills goals, and to inform the development of the Local Skills Improvement Plan (LSIP) for Stoke-on-Trent and Staffordshire.

To effectively achieve our priorities and deliver our long-term vision for our economy we need robust ongoing analysis and evidence of the latest economic picture, ensuring that we are aware of any challenges that may arise. The monthly Economic Bulletin forms a key part of our live evidence base.

Welcome to the latest edition of the Staffordshire & Stoke-on-Trent Economic Bulletin produced by our Economy, Skills and Insight Teams, which provides the timeliest analysis of official Government data, national intelligence and local insights on the state of the local economy.  

Latest edition

Welcome to the latest edition of the Staffordshire & Stoke-on-Trent Economic Bulletin produced by our Economy, Skills and Insight Teams, which provides the timeliest analysis of official Government data, national intelligence and local insights on the state of the local economy.

Alongside information on the Claimant Count and Job Vacancies that will be a part of every Bulletin, this month’s issue also provides more detailed youth claimant count analysis and updated ward level analysis of the claimant count to help identify areas which are being impacted the hardest by unemployment and a reliance on work-related benefits across Staffordshire & Stoke-on-Trent and where there may be a greater need for support. We also provide analysis of the latest business insolvency data to further understand how businesses are faring during the current economic climate.

We hope you find the Bulletin useful and welcome your comments and suggestions on further information you would like to see included in future editions.  If you do have any feedback please send your comments to SkillsAnalysis@staffordshire.gov.uk 

Kind Regards,  

Darryl Eyers

Director for Economy, Infrastructure and Skills, Staffordshire County Council

Key messages from edition 66 

  Local Picture 

  • In Staffordshire having seen improvement in the local economy and labour market following the COVID pandemic, as seen nationally, we saw unemployment, youth unemployment and dependency on work-related benefits increase during the energy and cost-of-living crisis.  
  • However, over the last year we have seen a steady decline in the Claimant Count, with residents either finding work or becoming economically inactive. 
  • The number of job vacancies shows a decrease of 10% over the past year, reflective of the challenging economic climate. This is a higher decrease than seen regionally and nationally, where job vacancies in the West Midlands have decreased 7% and nationally there has been a 6% decrease.  
  • We will continue to support our residents into work and ensure that Staffordshire has the strong workforce it needs to grow the economy. 
  • We also continue to support local businesses that face ongoing challenging conditions due to a wide range of factors including high interest rates and energy prices, increased commodity costs, increased wage levels, and lower consumer demand.  
  • Looking at the local data in more detail, the number of work-related benefit claimants in Staffordshire now stands at 15,045, this is 310 fewer claimants than at the same time last year. This is equivalent to a -2.0% annual reduction which is slightly higher than the reduction seen nationally (-1.6%) but slightly lower than regionally (-2.6%).  
  • The claimant rate in Staffordshire is currently 2.7% of the working age population, which has decreased from 2.8% the same period last year. 
  • Staffordshire continues to have one of the lowest claimant rates in the region, far lower than the regional average 5.2% which decreased from 5.3% the previous year, and lower than the England average of 4.0% which remained the same as the previous year. 
  • We will continue to support those residents that unfortunately find themselves out of work to access employment through our partnership working and dedicated Jobs Brokerage service. 
  • This month the youth claimant count in Staffordshire stands at 3,280, this is 310 more youth claimants than at the same time last year. This is equivalent to a 10.4% annual increase, which is slightly higher than the increases seen both regionally (10.0%) and nationally (9.9%). 
  • The youth claimant rate in Staffordshire is currently 5.2% of the 18-24 population, which is an increase from 4.7% last year. This is a concerning trend seen both regionally and nationally. It is important to note that Staffordshire continues to be lower than the national rate of 5.7%, which increased from 5.2% and far lower than the regional rate of 7.8% which increased from 7.1% over the last year. Our focus continues to be to engage with our younger residents and support them to find employment or to continue in education and training. 
  • Turning to job vacancies, Staffordshire saw a 10% decrease in the number of available job vacancies between January 2025 and January 2026 to a total of 11,200. This is lower than the number of work-related benefit claimants in Staffordshire. Stoke-on-Trent saw a decrease of 10% in job vacancies to a total of 4,400 which is significantly lower than the number of claimants. Across the region in the past year there was a 7% decrease, and nationally there was a 6% decrease in the number of job vacancies. 
  • Considering the top 20 job vacancy occupations in Staffordshire and Stoke-on-Trent, demand for roles in social care continue to remain high with ‘Care Workers & Home Carers’ being the most in demand occupations. 
  • The following occupations, ‘Cleaners & Domestics,’ ‘Sales Related’ and ‘Teaching Assistants’ also have strong demand. 
  • In the Education sector there is particularly high demand for and ‘Secondary Education Teaching Professionals’ and ‘Teaching Professionals’.’ 
  • In the Hospitality sector, ‘Kitchen & Catering Assistants’ roles are most in demand. 
  • The Logistics sector has high demand for ‘Warehouse Operatives,’ ‘Large Goods Vehicle Drivers’ and ‘Transport & Distribution Clerks/Assistants.’ 
  • There is high demand in the Health and Social Care sector for ‘Social Workers.’  
  • Demand for ‘Managers & Directors’ in the Retail and Wholesale sector remain strong. 
  • There is strong demand for ‘Customer Service occupations’ and ‘Book-keepers, Payroll Managers & Wages Clerks’ across business sectors.  
  • In the Engineering sector ‘Mechanical Engineers,’ ‘Plant & Machine Operatives,’ and ‘Engineering Technicians’ are in demand. 
  • There is also high demand for ‘Early Education & Childcare Practitioners.’ 
  • In the Financial sector ‘Chartered & Certified Accountants’ are in demand.  
  • There is also strong demand for ‘Assemblers and Routine Operatives.’ 
  • It is in these areas of the economy where job vacancies remain particularly high and where we are hearing reports of labour and skills shortages with a mismatch of workers or skills to fill vacant jobs. 
  • This has the potential to slow down economic growth and limit business survival unless the labour shortage and skills gap is quickly and effectively addressed. Clearly employment support organisations, skills providers and the Government’s Plan for Jobs including the Connect to Work schemes and new Skills Bootcamps have a vital role in upskilling and reskilling jobseekers into areas of demand and preventing them becoming long-term unemployed. Government and business sectors have a key role in ensuring that jobs in areas of demand are attracting workers with good pay and terms and conditions to help prevent labour shortages. 
  • There continues to be a high number of jobs available in the local economy and the need now is to ensure that there is a strong local labour pool with skilled workers able to fill these roles to support business recovery/survival and improve prosperity through better pay. The national and local support which is in place to support those that have been unfortunate enough to lose their jobs is vital in both reskilling and upskilling as well as enabling potential applicants to access the opportunities available. Encouraging those that have become economically inactive since COVID through the Connect to Work Programme will further help to address labour shortages and skills gaps. 
  • Staffordshire County Council’s dedicated Job Brokerage Service is designed to do exactly this by matching local people, employers, and training providers to fill jobs and provide people with the jobs and careers they need. 
  • There are clear emerging opportunities for job creation in the digital economy (including online retail and e-commerce), construction sector (including retrofitting homes), the car industry e.g. electric cars at Jaguar Land Rover, and in manufacturing  e.g. hydrogen combustion technology at JCB.  
  • We will also look to build on our existing strengths including engineering and advanced manufacturing through the adoption of AI, Automation and Machine Learning, construction to achieve Government house building targets and build major new infrastructure projects such as the West Midlands Freight Interchange which will create 8,500 new jobs. Advanced logistics within the ecommerce sector continue to drive demand, evidenced by Pets At Home in Stafford recently creating over 750 new jobs and Carlsberg Britvic investing £4 million in a new depot, with plans to create several hundred additional jobs. 
  • We will continue to support our residents into work and ensure that Staffordshire has the strong workforce it needs to grow the economy. 
  • Staffordshire and Stoke-on-Trent businesses that have been turned down by other lenders can now apply to the Staffordshire and Stoke-on-Trent Business Loan Fund, supporting businesses to grow through affordable, unsecured loans from £10,000 to £50,000.  
  • Applications for Staffordshire Means Back to Business Scheme business loans and grants remain open to small businesses in Staffordshire, including the Get Started and Grow Scheme. 
  • Alongside this there is support available through the Growth Hub and we have our start-up schemes and the Staffordshire Jobs and Careers Service. 
  • The Staffordshire Business and Enterprise Network (SBEN) continues to support local businesses with the transition to Net Zero. 
  • Businesses in Staffordshire can now apply for free energy assessments through the Green Solutions scheme. 
  • To ensure residents have access to the support needed to find employment there are several employment and skills programmes which they can access including the Connect to Work and skills bootcamps. 

 Local Initiatives 

  • Stoke-On-Trent & Staffordshire Growth Hub have partnered with the Federation of Small Businesses (FSB) to offer free 1-2-1 virtual business support sessions. 
  • The Staffordshire County Council Workplace Health Service, working with public health and local health experts, offers businesses a comprehensive and funded package of online and in-person support. 
  • Developer Indurent plans to invest £800m in Staffordshire over the next few years. The industrial and logistics specialist is currently delivering or promoting six million sq ft of space in the county, said senior director of planning Richard Hickman. "These sites are either in the planning process with a draft allocation, or they’re sites that we're building on currently," said Hickman. "To bring those sites forward over the next few years, we’re going to be investing something in the order of £800m. That's a huge investment and a reflection of the confidence that we have in Staffordshire. "We’re very much focused on the spine of the country and Staffordshire is the central part of that spine." 
  • JCB is marking its 80th birthday with news of a £100 million investment in ultra-modern manufacturing facilities at its global headquarters in Staffordshire. The project at the company’s plant in Rocester, Staffordshire, will see the installation of a fully automated powder paint plant costing £60 million as well as a full modernisation of the shop floor, with new machining centres, friction welders and cylinder boring machines. 

 National Context 

  • The UK economy in early 2026 is experiencing slow growth, with modest GDP growth and facing challenges like low business investment and a weakening labour market, while inflation has slightly dipped in January and is expected to fall further in 2026, paving the way for potential interest rate cuts later in the year. 
  • Looking forwards 2026 is expected to be less volatile than previous years, with potential, though modest, economic recovery. 

 Economy 

  • The economy grew by 0.1% in the last three months of the year, which was slightly slower than economists had expected. The ONS said the overall picture for growth towards the end of the year remained “subdued”.  
  • Monthly GDP is estimated to have grown by 0.1%, following a growth of 0.2% in November 2025 and a fall of 0.1% in October 2025. 

 Cost of Living 

  • The consumer price index measure of inflation dropped to 3 per cent in the year to January, down from 3.4 per cent in the 12 months to December 2025. The fall in inflation, combined with jobs data showing unemployment at a near five-year high and wage increases slowing, has reportedly increased the likelihood of an interest rate cut by the Bank of England in March.   
  • Transport, and food and non-alcoholic beverages made the largest downward contributions to the change in inflation. 
  • The rate of inflation remains well above the Bank of England's 2 per cent target. 
  • Wage growth continues to slow. Annual growth in real terms, adjusted for inflation using the Consumer Prices Index excluding owner occupiers' housing costs (CPI), was 0.8% for regular pay and 0.7% for total pay in October to December 2025. 

 Business Conditions 

  • The latest results from Wave 150 of the Business Insights and Conditions Survey (BICS), which was live from 2 to 15 February 2026, suggest that business conditions continue to be challenging but with some signs of increased optimism. 
  • The latest business insolvencies data shows that in January 2026 there were a total of 1,614 company insolvencies in England and Wales, 17% lower than the number registered in the previous year (1,937 in January 2025), and 4% lower than the number registered three years previously (1,685 in January 2023). The main concern around company and individual insolvencies are associated issues such as mental health and homelessness. 

 Labour Market 

  • Estimates for pay rolled employees in the UK fell by 121,000 (0.4%) between December 2024 and December 2025, and decreased by 6,000 (0.0%) between November 2025 and December 2025.  
  • The UK employment rate based on the LFS for people aged 16 to 64 years was estimated at 75.0% in October to December 2025. This is down in the latest quarter, but unchanged on estimates of a year ago.  
  • The UK unemployment rate for people aged 16 years and over was estimated at 5.2% in October to December 2025. This is up in the latest quarter and above estimates of a year ago. The latest unemployment rate is a five-year high. 
  • The UK economic inactivity rate for people aged 16 to 64 years was estimated at 20.8% in October to December 2025. This is down in the latest quarter and below estimates of a year ago. 
  • The UK Claimant Count for January 2026 increased on the month but decreased on the year to an estimated 1.691 million.  
  • The estimated number of vacancies in the UK has remained broadly flat across recent periods.  

 Conclusion 

  • In conclusion, the economy continues to see slow growth, with the construction sector significantly struggling. There is hope that throughout 2026 the economy may see improved stability and some growth but this is likely to be limited.  
  • It is positive that inflation has dropped closer to the Bank of England’s target and alongside unemployment rising and wage growth slowing, may pave the way for an interest rate cut in March which will be welcomed by businesses and people struggling with costs. 
  • Alongside continuing global uncertainty and the introduction of new business-related UK taxes, many businesses also have ongoing concerns around longer-term issues including high interest rates and energy prices, increased commodity costs, wage pressures, supply-chain constraints, lower consumer confidence, and some labour market challenges. Although there are some signs of increased optimism as we move further into 2026. 
  • The labour market continues to loosen, with pay rolled employees declining and unemployment rising, the latter partly driven by people moving from being economically inactive.  This all comes at a time when job vacancies have seen a long-term decline, with the challenging economic conditions meaning more businesses have reduced recruitment and made redundancies, therefore it will be more challenging for those looking for work to find work. 
  • We need to continue to support those still struggling with the cost-of-living, residents to transition into work and viable businesses to survive and grow. 
  • In Staffordshire we have a confident, diverse, and robust economy, demonstrated by the improvement and recovery witnessed since the pandemic. As the ongoing global and national socio-economic challenges persist it remains vital that local partners work together to support local businesses and residents. We continue to deliver the Staffordshire Means Business Programme which has helped hundreds of Staffordshire businesses transition to new business models including diversification, digitisation and greenification to improve their viability and sustainability. 
  • We continue to support residents into work and help businesses address ongoing labour shortages and skills gaps to aid survival and growth. A key part of this being the recently established Staffordshire Jobs and Careers Brokerage Service which is designed to match local people, employers, and training providers to fill jobs and provide people with the jobs and careers they need. We are also delivering the new Connect to Work programmes which forms a fundamental part of our Get Staffordshire and Stoke-on-Trent Working Plan. 
  • Alongside this, skills provision, such as the new Institute of Technology, has a significant role to play in ensuring that local residents have the skills and training needed within the local economy to support increased growth, productivity, and prosperity. Reskilling and upskilling residents from declining sectors into priority growth areas of the economy such as digital, green, advanced manufacturing, advanced logistics, construction, and health and social care where they can access higher value better paid jobs will be key. 

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