Regional employment levels boosted
THE NORTH West’s employment market continued to strengthen in the second quarter, with unemployment falling by 16,000 to 277,000 – the lowest level in around 18 months.
Data provided by the North West Regional Development Agency shows that despite the drop, which was steeper than the national average, the region still has the fifth-highest rate of unemployment nationally at 8.1%, compared with 7.7%. nationally.
The region also has a higher-than-average ratio of public sector workers, which could mean higher rates of unemployment as cuts fall on the sector.
The agency said that inactivity rates also dropped during the quarter by 14,000. It is a measure of people who are not working either because they are either unable or unwilling.
The total number of people in employment increase by 30,000, although much of this was part-time or seasonal work. Construction, retail and transport were the sectors taking on net new numbers of staff but job numbers in financial and professional services, education and the public sector have all started to fall.
The agency’s senior economic analyst, Adam Crockett, said there had also been a pleasing drop in long term youth unemployment (under 24 year-olds who have been unemployed for 12 months or more).
“The biggest falls have come from Greater Manchester, which has been particularly affected by long term youth unemployment,” he said.
The main reasons for this were people finding jobs and higher rates of enrolment in government schemes.
Reacting to national figures, the Institute of Directors’ chief economist Graham Leach said that he feared harsher news ahead once proposed public sector cuts kick in.
“Public sector employment has only fallen by 18,000 over the past year,” said Leach. “The risk now is that private sector employment growth will slow and be insufficient to offset the crunching job losses expected in the public sector.
“Two things look certain over the next 6-9 months. First, a softer labour market will put downward pressure on earnings growth. Second, industrial unrest in the public sector will multiply. At worst we could be facing a winter of discontent. At best a feel-bad recovery.”
