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The government should look to the West Midlands first after Deputy Prime Minister Nick Clegg unveiled plans to plough ahead with infrastructure spending. That's according to regional business leaders who said such projects would provide a "timely intervention" to tackle the West Midlands' growing unemployment problems. It comes as a 9.1 per cent unemployment rate for the region was revealed for the period from May to July 2011.

Clegg yesterday (14 September 2011) announced that the government would be pushing ahead with major infrastructure projects involving rail, road and broadband.

He also pledged to hand-pick 40 projects which will be given "priority status" and "rigorously examined by ministers to make sure there are no delays, no blockages, and we get these projects delivered".

His words came as the Office for National Statistics revealed unemployment levels rose by 4,000 in the West Midlands from May to July 2011.

There were 239,000 unemployed in the region during the period meaning 9.1 per cent of the working population is now out of a job in the West Midlands.

And business leaders were quick to link together Clegg's pledge with the region's growing jobless issues.

John Rider, West Midlands chairman of the Institute of Directors, said: "The storm clouds are gathering with falling employment and rising unemployment at a time when it is difficult to see how this might reverse.

"I am encouraged by Deputy Prime Minister Nick Clegg's promise to get infrastructure development moving again, what he described as a 'gear shift' in having big projects back up and running given the economy had changed rapidly for the worst in the last six months. New rail and building schemes would provide a badly needed short term boost and aid the beleaguered construction sector. And the West Midlands is the ideal place to make a start."

Christine Braddock, president of Birmingham Chamber of Commerce Group, added: "Projects such as high-speed rail will create 22,000 jobs in the West Midlands and will create further jobs with the anticipated £1.5bn per annum of new investment.

"BT has announced the £2.5bn roll-out of super-fast broadband which will also encourage businesses to invest in the region and create more jobs.

"We would encourage the government to progress these and other major investment projects as quickly as possible to overcome these disappointing figures, which actually fell in July."

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: "We would like to see private sector employment growing at a faster rate and that requires more action from government.

"I am pleased to hear that they want to bring forward capital investment projects in transport and communications because that will encourage growth and job creation.

"We also need to see a drastic reduction in red tape and a genuine plan for an improvement in skills.

"The private sector wants to take on new staff but that process should be made easier for them – particularly in the current climate. It is no coincidence that two of the most respected national business commentators speaking at our conference on Friday have echoed this view."

The UK unemployment rate was 7.9 per cent from May to July 2011 with 2.51 million now jobless nationwide. The North East was again the worst faring region with 10.7 per cent out of work while only 5.8 per cent were unemployed in the South East.

The total number of those claiming Jobseekers' Allowance was 169,900 in the West Midlands.