Walsall’s economy falls behind national averages on nearly every front

Depressing figures detailing Walsall’s economic growth indicates that the borough is behind national averages on nearly every front. 

The information was presented at the authority’s prosperous places and investment scrutiny committee meeting on Thursday June 3, by the executive director for economy, environment and communities, Dave Brown. 

Nearly one in four of Walsall’s 288,736 residents are economically inactive and 12,200 people need to be put to work to hit the government’s target of 80 per cent. 

Brown added that although unemployment rates are high, the number of people claiming benefits is low. 

Walsall has 9,545 businesses, but for the size of its population, it needs an additional 3,125 to reach its ‘full potential’.

Also highlighted was a lack of funding going into innovation. 

Brown said Walsall was not ‘getting its fair share’, receiving just £2 per head of UK Research and Innovation (UKRI) funding compared to £107 nationally. 

The percentage of reception children with a good level of development in Walsall is best in the Black Country but still lagging behind the national average. 

The GVA per head in Walsall, a measurement of economic output, is £19,069 – ‘massively below’ the national average of £36,632. 

Wages in Walsall are rising but still £5,000 less than national average at £32.624.

Walsall along with the rest of the Black Country has seen ‘decades of underinvestment’, with over a £2.3billion shortfall in the last five years alone. 

Walsall and the Black Country continue to face socio-economic challenges and 2024 was a tough year. It was heard that early signs for 2025 aren’t much better.

On a brighter note, Walsall’s export growth at 39.1 per cent is higher than the national average of 27.2 per cent. In 2022 Walsall surpassed Dudley, Sandwell and Wolverhampton in total export value. 

Brown added: “I think we all know that if we looked at the borough from an economic perspective, you could draw a line from the north to the south and the demographics of the east and the demographics on the west are almost polar opposites. 

“Over a short span you will see healthy life expectancy, GVA per head massively different, it’s one of the unique features of Walsall. How it varies so much over a small geographical distance and how stark that line is through the borough.”