Labour Research December 2008

News

Job losses show regional variation

The recession could be tougher and longer than first appeared likely and may hit London harder than northern cities, but unemployment is rising fastest in Wales.

According to analysis by the Local Government Association, recent growth of big northern cities has placed them relatively well to cope with the effects of the recession. By contrast, almost two in five of jobs that could be at risk over the next two years are in London and the South East, although even within individual regions there are clear differences between how local areas may fare.

The report From recession to recovery: the local dimension says the hardest hit industries will be construction and manufacturing, while high skilled industries look set to remain relatively unscathed.

However, the TUC points out that the biggest regional increase in unemployment so far has taken place in Wales. Almost one in five of the extra 140,000 people registered as unemployed across the UK are from Wales with male workers suffering most. This is largely due to the downturn in the car and steel industries.