Northern jobs gap hits record high

A study by the IPPR North think-tank, timed to coincide with the publication of the latest monthly jobless figures, has concluded the North has experienced a “double dip” unemployment crisis over the past year, with the number of people out of work soaring again after a short recovery.

By contrast, the think-tank says unemployment in the South-East has remained below the peak it hit during the 2008 recession.

Unemployment nationwide has risen beyond 2.6 million over recent months and is expected to show a further increase with new figures out this morning.

The IPPR said the jobless total has risen by around 19,000 in Yorkshire over the past year, and called for action from the Government in next week’s Budget.

Ed Cox, director of IPPR North said: “There has to be a greater focus on cities in the North if we are ever to get out of the mess the UK economy is in.

“Cities like Manchester, Leeds and Newcastle have the potential to create real growth in the economy – but this potential has to be taken seriously by the Government with a focused regional policy.

“Our research shows that it is mainly ‘white collar’ jobs that have been lost in the North, with managers and administrative staff hit the hardest. Job creation in the North must be a priority.”

Labour seized on the report as further proof the Government is not acting decisively to deal with the lack of growth.

Rachel Reeves, the Shadow Chief Secretary to the Treasury and Leeds West MP, said the scale of unemployment was “shocking”.

”I have seen the impact in Leeds West,” she said. “It is clear that we have an economy that isn’t working for working people.

“The Government is agonising about how to cut tax for those earning over £150,000, just as this report reveals a picture about unemployment in the North.”

Hull remains one of the cities worst affected by unemployment, and the Local Enterprise Partnership for the area said that only Government support would help the region drag itself out of the current crisis.

Lord Haskins of Skidby, chairman of the Humber LEP, said: “There is an economic imbalance which needs to be corrected with investment and support, not hand-outs.

“When the North has a major opportunity for growth, such as on the Humber with renewable energy, every part of the Government needs to back us and help make it happen. That’s happening for us now, and it’s the most effective way of creating jobs.”

The Chancellor is under increasing pressure to offer new measures to boost growth next week, but has little room to manoeuvre with the deficit still soaring.

A spokesman for the Department for Work and Pensions insisted measures are now in place to boost employment in the hardest-hit areas.

“This Government is determined not to leave any region behind,” the spokesman said.

“We’ve introduced a series of measures specifically to help areas which have been more vulnerable to public sector job losses.

““Tackling unemployment is a priority for Ministers which was why we acted quickly across the country to replace the numerous failing back-to-work schemes with the Work Programme, which stands to benefit thousands of people in Yorkshire.

“It is the biggest single payment by results employment programme Britain has ever seen, with hundreds of organisations involved – giving people skills employers want.”