New employment data has revealed a concerning downturn in Worcestershire's job market, with the number of payroll employees falling by nearly 2,000 over the past year. The latest figures highlight the ongoing struggles faced by local businesses in a challenging economic climate.
Significant Drop in Payroll Employees
According to an analysis of Office for National Statistics data by the employment app WageSight, Worcestershire recorded 270,186 pay-rolled employees in December 2025. This represents a year-on-year decrease of 1,847 employees, equating to a 0.7 percent decline. Additionally, the county experienced a reduction of 812 employees between November and December alone, underscoring a troubling trend in local employment stability.
Recent Business Closures Impacting the Region
The decline in employment coincides with several high-profile business closures across Worcestershire. Notably, Cosy Club in Worcester shut its doors with staff receiving less than a week's notice of the closure. Meanwhile, Hillbilly's Street Kitchen, an award-winning restaurant in Malvern, ceased operations after four years of trading.
Co-owner Dave Butler cited the tight margins in the catering industry as a primary reason for the closure, reflecting broader pressures on local enterprises. These closures have directly contributed to the reduction in payroll numbers, affecting both urban and rural areas within the county.
Council Response and Support Initiatives
Alan Amos, Worcestershire County Council's cabinet member for business and skills, acknowledged the difficult economic conditions impacting employment levels nationwide. He identified several key factors driving the downturn, including rising business costs, shifts in consumer spending patterns, and the ongoing effects of ill health on the workforce.
The council is actively implementing multiple support programmes to assist both businesses and residents during this period of economic strain. In collaboration with central government funding, Worcestershire County Council offers a range of business support initiatives and directs local firms to the Worcestershire Growth Hub.
Comprehensive Support Through the Growth Hub
Businesses accessing the Growth Hub can benefit from:
- A dedicated account manager for personalised assistance
- Tailored advice on retention and growth strategies
- Specialist guidance on navigating economic challenges
- Support in securing grant funding opportunities
Furthermore, the council is partnering with the Department for Work and Pensions and district councils on employment schemes designed to help individuals find work. These programmes include:
- Careers Worcestershire, which supports young people aged 16–24 across the county
- The new Connect to Work programme for individuals with health conditions and disabilities
- The WorkWell service, delivered in partnership with the NHS, assisting both employed individuals and those absent from work to return successfully
Cllr Amos emphasised the council's integrated approach, stating: "By bringing together health, employment and business support across Worcestershire, we are focused on helping more people into work, supporting businesses to survive and grow, and building a stronger, more resilient local economy."
Accessing Further Assistance
Businesses seeking additional information on available support can contact Worcestershire County Council on 01905 677 888. Individuals requiring employment assistance are encouraged to ring the council's Adult Front Door service on 01905 768053 for guidance and support.
