Data from the Office for National Statistics (ONS) indicated that the unemployment rate in the West Midlands rose to 5.6% in the three months to the end of November 2023.
Industrial output contracted significantly in this region, and local business investment intentions dropped to a three-year low. However, there was a minor positive indicator as the local claimant count (those claiming unemployment-related benefits) decreased by approximately 2,800 to 112,400.
With reference to the data in Extract B and your knowledge of economics, assess the impact of rising unemployment rates in the West Midlands.
