Demographics

Birmingham and Solihull’s workforce is changing. According to the 2001 census, non-white ethnic groups comprised the majority in nine of Birmingham’s 40 wards. Seven of these wards, all located close to the city centre, had a majority of residents from a Pakistani ethnic background; 41 per cent of Birmingham’s Bangladeshi ethnic residents were aged 16 or under, compared to 38 per cent of individuals of Pakistani ethnicity in Birmingham and 23 per cent of Birmingham residents as a whole.

In 2001, 23 per cent of the population of Birmingham were of White British ethnicity and over the age of 50. Most were concentrated in the city’s outer wards. Between now and 2028, the number of under 20s in Birmingham and Solihull is expected to grow by 20,400. In contrast, the population of over 40s in the sub-region will grow by 74,300.

As such, the White British working age population in the sub-region is, on average, getting older. Our workforce is also becoming more cosmopolitan, with increasing numbers of young, non-white ethnic individuals entering the labour market.

Business Impact
50,000 jobs are predicted to be created in Birmingham and Solihull between 2005 and 2015. For the new jobs to be filled, many more employees will clearly need to be drawn from the growing demographic groups in the city. However in 2000, unemployment rates in Birmingham were recorded as highest amongst the Bangladeshi, Pakistani and Black African-Caribbean ethnic populations. The rate of those lacking of any qualifications whatsoever was also highest amongst these groups. In the same year, 65 per cent of over 45s in Birmingham and Solihull were measured as being economically inactive; 32 per cent had been unemployed for five years or more.

Chamber Position
The Chamber believes that businesses in Birmingham and Solihull should be aiming to recruit and retain more older and non-white ethnic individuals. We feel that the demographic changes occurring in the city provide a significant opportunity for our members; not only does a cosmopolitan workforce provide natural linkage to markets throughout the world, an employee base which is more representative of the local population will allow a firm the opportunity to exploit the specific market needs of an older and more cosmopolitan population. Older workers also offer a wealth of business experience and are also statistically less likely to take time off sick.

The Chamber has set up a Demography Steering Group, which comprises of bodies such as Faircities, Third Age Employment Network (TAEN), Birmingham Professional DiverCity, Acas, Jobcentre Plus, Institute of Asian Businesses (IAB) and a selection of Chamber members. The remit of the group is to informing members of the demographic changes that are taking place in the sub-region, why they will affect their business and how they can turn them to their advantage.

For more information, please contact Katie Teasdale on 0121 450 4204 or email k.teasdale@birminghamchamber.org.uk.   

For more information on demographics click here:
Demographic Change in Birmingham