23/06/2014

Job Creation Drops 31%

Inner London is the only area of the country to have a higher rate of job starts than before the recession, while job creation in some parts of the country is down 31 per cent on pre-recession levels, according to a new Trade Union Congress (TUC) report published today.

The TUC Touchstone pamphlet Equitable Full Employment: A Jobs Recovery For All shows that the recent rise in employment is being driven by fewer people leaving their jobs, rather than more people finding new work.

Job starts – the number of people starting a new job within a three month period – are currently around 20 per cent below pre-recession levels across the UK, and are still falling in parts of the country. The fact that fewer people are leaving their jobs helps to explain why the employment rate for older workers is increasing so much faster than for young people, says the TUC.

The report, written for the TUC by Tony Wilson and Paul Bivand of the Centre for Economic and Social Inclusion (Inclusion), compares job start rates before the recession, at the height of the crash and during the recent recovery. It finds that metropolitan areas such as London, Birmingham and Tyne and Wear are recovering faster than their neighbouring rural areas.

Inner London is the only area of the country where jobs are being created at a faster rate than before the crash. Outer London, the South East and Eastern England have recovered since the crash but job starts are still 11 per cent, 16 per cent and 21 per cent below pre-recession levels.

Job creation across the rest of the country is more mixed, says the TUC. Job creation in Tyne and Wear is recovering (though still 11 per cent below pre-recession levels) but getting worse across the rest of the North East.

Job creation in the West Midlands metropolitan area is recovering but the rest of the region continues to decline (down 31 per cent), while South and West Yorkshire are both performing far better than the rest of Yorkshire and Humberside. Job starts in Greater Manchester have fallen slightly since the height of the crash but the city is still doing far better than Merseyside and the rest of the North West, where job starts are 30 per cent down on pre-recession levels.

Strathclyde is the only major metropolitan area that is performing worse than its neighbouring area, with job creation across the rest of Scotland recovering faster.

The report shows while the UK’s employment rate is rising, there are huge swathes of the country – particularly rural areas – where job creation remains depressed and is getting worse, say the TUC.

(CVS/CD)

Related UK National News Stories
Click here for the latest headlines.

12 December 2012
One In Three Year Six Children Overweight
One in three final year primary school children are overweight or obese. The percentage of final year – Year 6 - primary school children (generally aged ten to 11) who were overweight or obese increased to 33.9 per cent in 2011/12, up from 33.4 per cent in the previous year.
10 January 2012
Millions Of New Year Quit Attempts Doomed To Go Up In Smoke
Two thirds of UK smokers, the equivalent of six million people, will try and quit in January but half will have failed within just one week, according to new research among 6,300 current or former smokers. In addition, one in ten quit attempts will last less than 24 hours.
29 March 2012
Economic Climate Puts Young Brits 'Life In Limbo'
A staggering two thirds of Brits (65 per cent) have been forced to put important life decisions on hold due to the current economic climate.
10 February 2015
Birmingham Council Considers Job Cuts In Money Saving Drive
Birmingham City Council has voted to reduce the opening hours of the city's new £189 million library by almost half. Opening hours of the library, which opened in September 2013, are to be cut from 73 to 40 as part of a drive to save money.
26 March 2013
Job Centre's Referring Claimants To Food Banks
Job Centre staff are referring thousands of welfare recipients to food bank, over concerns they have not got enough money to eat, according to the BBC. Benefits officials have given around 6,000 people vouchers for emergency food parcels in the last year, figures obtained by the BBC suggest.