Up to thirty-five job seekers chasing every vacancy in struggling pockets of the UK

Analysis of the latest UK unemployment statistics released recently from the think tank IPPR North has found there are up to 35 people chasing every job in some ‘cold-spots’ in the UK.

The 10 worst affected areas are:
Clackmannanshire has 35 job seekers to every vacancy
Isle of Wight has 21 job seekers to every vacancy
East Renfrewshire has 20 job seekers to every vacancy
Haringey has 19 job seekers to every vacancy
Inverclyde has 18 job seekers to every vacancy
East Ayrshire has 18 job seekers to every vacancy
Middlesbrough has 17 job seekers to every vacancy
West Dunbartonshire has 17 job seekers to every vacancy
Lewisham has 17 job seekers to every vacancy
Blaenau Gwent has 16 job seekers to every vacancy
 
The IPPR North analysis shows that Northern areas are particularly badly affected, as is the West of Scotland, South Wales and some parts of London.
 
IPPR North is urging the Government to extend the ‘youth contract’ to guarantee everyone out of work for more than a year a job, targeted at the worst affected areas first.
 
The most badly affected areas in the North include:
Middlesbrough has 17 job seekers to every vacancy
Hartlepool has 16 job seekers to every vacancy
Redcar and Cleveland has 16 job seekers to every vacancy
Kingston upon Hull has 14 job seekers to every vacancy
Knowsley has 13 job seeker to every vacancy
North East Lincolnshire has 12 job seekers to every vacancy
South Tyneside has 11 job seekers to every vacancy
Tameside has 11 job seekers to every vacancy
Wirral has 10 job seekers to every vacancy
 
The IPPR North analysis found that the national average of job seekers to job vacancies is six. Areas with two or fewer job seekers for each vacancy are Dorset, Aberdeen City, Surrey, Trafford, Windsor and Maidenhead, Westminster, Buckinghamshire, Oxfordshire and City of London.

Further analysis by IPPR North of the latest unemployment figures shows unemployment has increased 15 per cent in the North compared with an English average of 8 per cent over the last year. The analysis has found that 93,000 jobs have been lost in the Northern regions in the last year.
 
IPPR North’s analysis shows that over the last year unemployment is:
up 22 per cent in the North West (57,000 more people unemployed)
up 13 per cent in the North East (17,000 more people unemployed)
up 13 per cent in London (49,000 more people unemployed)
up 8 per cent in Yorkshire and Humber (19,000 more people unemployed)
up 7 per cent in Scotland (15,000 more people unemployed)
up 4 per cent in the East (18,000 more people unemployed)
up 2.4 per cent in the East Midlands (4,000 more people unemployed)
up 2 per cent in the South East (6,000 more people unemployed)
down 4.7 per cent in the West Midlands (12,000 fewer unemployed people)
down 0.5 per cent in the South West (1000 fewer unemployed people)
 
Ed Cox, Director of IPPR North said:
 
“There must be more targeted help for struggling regions, otherwise we are in real danger of not only betraying a whole generation of people who can’t find work but of ignoring the very places that could help grow the UK economy. Cities like Manchester, Leeds and Newcastle have the potential to provide the economic growth we really need to see but there needs to be a focussed regional policy.
 
“The longer someone is unemployed, the less likely they are to ever return to work. Being out of work for more than a year can have a scarring effect, making it harder to get a job as well as having a negative impact on one’s health and well-being. This means that even when employment starts to pick up again, they will find it hard to compete with other jobseekers and could find themselves permanently shut out of the jobs market.”
 
IPPR North recommends a five-point plan for jobs growth in the areas most at risk:
 
A targeted jobs guarantee: a job paid at the minimum wage or above, to anyone who has been unemployed and claiming JSA for more than 12 consecutive months targeted to the worst affected areas.
 
Innovation clusters: these should be in specific places and focus around renewable energy; advanced manufacturing: health and medical; nuclear; marine and ports.
 
Capital allowance concessions: government should introduce targeted tax incentives such as higher research and development tax credits and increased capital allowances for specific areas of investment and innovation.
 
Bring forward capital spending on infrastructure projects including the Northern Hub transport development.
 
A regional investment bank: focused on investment in innovation and small and medium-sized businesses.