Manchester’s jobless rate rises

Unemployment levels in Greater Manchester for the three months to June increased by 7.9%, according to the latest Manchester Monitor survey by economic strategy body, New Economy.

It said that the number of Jobseekers Allowance claimants in Greater Manchester has grown by more than 4,750 in the year to July 2011 to reach 79,000, with both longterm and youth unemployment increasing.

The survey also reported declining manufacturing activity in the city-region and suppressed levels of wage inflation. The housing market also effectively remains at a standstill, with the average selling price static at £107,000.

There were pointers to more positive trends, though, particularly the announcement last week that Manchester Airport Group is to become a sister airport of Beijing Capital International, which will lead to direct flights to China and boost passenger numbers. Hotel occupancy rates also increased, with average occupancy of at least 80% in July.

Baron Frankal, director of economic strategy at New Economy, said: “The UK economic outlook is looking increasingly downbeat and Greater Manchester is not immune to the challenges which this presents.

“Even taking into account changes to the way benefit claimant numbers are reported, the JSA figures this month are worrying and indicate the fragility of the labour market.

“Despite the relative gloom, the fact that Greater Manchester is continuing to grow its profile on the international stage is encouraging and the Enterprise Zones at Airport City and the recently-announced Daresbury Science & Innovation Campus show that Greater Manchester is working hard to emerge from the downturn with the right components to deliver sustainable economic growth.”