Fears about job security have risen sharply in the West Midlands in the wake of the Rover collapse, Lloyds TSB Financial Markets has claimed.

According to the bank's monthly UK Consumer Barometer survey, job confidence in the region has slumped alarmingly since last month's General Election.

However, a sister survey, the UK Business Barometer, discovered that at the same time business confidence in the region has increased.

The two surveys are dominated by the Rover fallout, although the results suggest that companies are once again enjoying the "feel good factor".

The business barometer tested how optimistic local companies were about sales prospects for the coming year.

In February, prior to the Rover crisis, when West Midlands businesses were surveyed to find out whether they thought sales would increase or decrease, on balance 61 per cent were in favour of the former.

However, in March this figure slumped to 44 per cent, and 42 per cent in the following month.

But in May the balance figure shot up t o 86 per cent, and Lloyds TSB Financial Markets experts believe this massive change of heart is due to a number of factors affecting the national economy, including the peaking of interest rates; more favourable exchange rates; a return to stability following the General Election; and a belief that there is still growth in the economy.

The consumer barometer tested how people felt about job prospects, and in the West Midlands, job confidence fell by 16 per cent between April and May.

Respondents were also asked a follow up question about employment prospects in the UK, and in the West Midlands only 18 per cent thought the situation was better than 12 months ago.

A massive 44 per cent thought job prospects were worse than a year ago, giving a balance of 26 per cent, way below every other region of the UK.

"It seems that while the region's workforce has become more worried about job security and employment prospects post-Rover, the people they work for are actually much more optimistic about the way things are going," said James Thomas, regional director, Lloyds TSB Financial Markets.

"This may seem a little surprising, but I think it underlines how far the West Midlands has diversified away from its traditional dependence on the automotive sector in recent years, and also that the economy is in generally good shape at the moment.

"However, the employees of our business respondents are clearly not feeling as optimistic, and in fact seem much less secure.

"This is not good for the local economy, as they will not be inclined to spend as much as they have been doing.

"People became worried about the region's general employment prospects in the wake of the Rover crisis, but there has also been a collapse in confidence about prospects in general, with fears about possible interest rate rises.

"These are probably unfounded, and in fact the West Midlands is currently pretty isolated where consumers' fears about job security are concerned."