Unemployment still a concern, says New Economy

THERE are signs of an economic recovery in Greater Manchester but unemployment numbers are still higher then last year, says research body New Economy.

Its monthly Manchester Monitor highlights ongoing passenger growth at Manchester Airport and higher hotel occupancy.

But it says Greater Manchester is still “behind the curve ” when it comes to employment.

The latest Jobseeker’s Allowance (JSA) figures show that 84,500 people in Greater Manchester were claiming JSA in October 2012.

This was a slight decrease on the September 2012 figure, but on an annual basis the overall claimant count remains 2,200 (2.7%) higher than this time last year. The recently published Greater Manchester Forecasting Model (GMFM) anticipates that the peak levels of employment achieved in 2007 are not forecast to return until 2017 in GM.

Between 2012-22 an estimated 85,000 new jobs are forecast to be created in GM, with the business services sector anticipated to be the main contributor of new employment opportunities.

This month’s Monitor also highlights that there is no sign of any real recovery in housing market as continuing low levels of sales keep values depressed.

Baron Frankal, director of economic strategy at New Economy, said: “Whilst there is some good news this month, with a continued increase in airport passenger figures and some optimistic long-term messages from the GMFM, overall we end 2012 as we started – with the need to focus on the economy long-term and build for a future that brings better and more sustainable jobs.

“At the same time, now, we need other interventions, on schools and skills, transport, health and housing that enable all across this great city to access those jobs. The only silver bullets are patience, perseverance, luck and having enough intelligible information to make the right choices.”