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Study reveals UK cities most hit by recession unemployment

Wednesday, April 15th 2009 - 05:21 UTC
Full article

Job losses during the current British recession have impacted most on large cities, mainly Birmingham, outside London, according to research. The biggest jump in total numbers of people claiming unemployment benefit were found in the North, West Midlands, Scotland, and areas linked with traditional manufacturing and heavy industry, a study by The Work Foundation found.

Birmingham topped the list of job losses, with the number of people claiming Job Seeker's Allowance, JSA, rising from 33,274 in February 2008 to 45,657 in February 2009. This took the claimant rate from 5.3% to 7.3%.

The number of unemployed people also rose significantly in Leeds, Glasgow, Sheffield, Hull, Manchester, Bradford, Kirklees, Liverpool and Bristol. However, the sharpest increases in unemployment - as a percentage - often came in council areas which never shared in the success of the economic boom.

The Wear Valley saw the biggest percentage increase, with unemployment more than doubling from 1,117 to 2,342. Blaenau Gwent in Wales saw an increase in people claiming JSA of almost 70%, from 1,970 to 3,338. And the number of jobless in Hull was up by more than 65% from 8,062 to 13,366.

Naomi Clayton, senior researcher at The Work Foundation, said: “Places in the eye of the storm as job losses mount are the UK's core cities and areas associated with traditional manufacturing - places which in many cases had yet to recover fully from previous recessions before this one set in.

”In terms of absolute numbers of new people signing on for JSA, it is the core cities of the north and midlands that are worst hit. Perhaps more revealing, though, are the council areas that have seen the sharpest upward movements in unemployment rates.

“These tell a story of a more traditional UK recession: some areas which had yet to experience the economic prosperity enjoyed by others are once more showing how vulnerable they are to downturns, especially if dependent on single employers.

”Policy makers ignore how recessions play out locally at their peril. It is to be hoped that the forthcoming budget focuses much more attention on the large cities - Manchester, Leeds, and Birmingham - that can drive the recovery, as well as recognising which areas need most support to survive and prepare for better times”.

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Categories: Economy, International.

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