Economy
Milton Keynes tops UK jobs growth list Print E-mail
Monday, 10 December 2007
Half of the UK’s most improved cities in terms of employment growth are in the north.

Research by the independent urban policy research unit Centre for Cities indicates that with below average employment rates, however, these northern improvers still have a long way to go.

The report reveals worrying economic inequalities within all large cities, up and down the country. Cities Outlook 2008 exposes the complexities behind the north-south divide.

The report shows that out of the top ten improving cities - based on employment growth over ten years - half are northern, including Derby, Doncaster and Sunderland, in 4th, 6th and 7th place.

No clear or prescriptive formula

For four of these five northern cities employment rates are still considerably below the national average. Sunderland ranks almost bottom with 31 per cent of the city’s working age population not in employment compared 26 per cent, nationally.

Not in employment includes those of working age that are inactive, e.g. in education, long-term disabled or sick, early retirement etc, and unemployed, e.g. those who want to work, are available to work and are actively seeking employment.

Centre for Cities said that there is no clear or prescriptive formula for improved city performance. Size matters, but many medium-sized cities like Milton Keynes and Reading are showing much stronger performance than the eight Core Cities.

Milton Keynes topped the list of UK employment growth for the period 1995 – 2005, closely followed by Portsmouth.

Although the Greater South East is still dominant, Northern cities like Sunderland and Sheffield are now doing better.

Uneven regional economic growth

The revival of our biggest cities is still not complete. London, Bristol and Edinburgh have all seen strong population gains over the past decade. Many still have a long way to go: for example, the populations of Belfast, Glasgow and Birmingham actually fell between 1996 and 2006.

Even Manchester – often cited as the most successful city outside London – recognises that it has a lot more to do. Meanwhile, over one-fifth of all working-age adults in Liverpool have no qualifications, and one-fifth of Hull’s working-age population is claiming work-related benefits.

Regional economic growth across the country remains very uneven. The output gap between the Greater South East and the Northern regions continues to be massive. Recent small gains up North are welcome, but they will need to be sustained over many years if that gap is going to be narrowed. It’s not simply a North-South divide, because cities like Warrington and York are doing well on some key indicators.

Wealth and deprivation 

The report highlights the inequalities within as well as between cities up and down the country. Manchester, Birmingham and London each appeared in the report’s ranking of the ten most unequal urban areas, measured in terms of wealth and deprivation.

Across the city regions, the disparities are stark. In Manchester 35 per cent of the working-age population are not in employment, compared to 20 per cent in Stockport.

In Birmingham 37 per cent of the working age population are not in employment, compared to 21 per cent in neighbouring Solihull.

Forty-seven per cent of working-age residents in the London borough of Tower Hamlet’s are not in employment, compared to over 22 per cent in Sutton.

While these city centres have been physically transformed and regenerated, less than a mile from Manchester’s new Piccadilly Station and London’s Canary Wharf, entrenched pockets of unemployment and underperforming housing markets remain.

Biggest cities polarised 

Centre for Cities is calling for cities to move beyond physical city centre redevelopment towards the next wave of regeneration by providing additional skills training to workless residents in the surrounding areas and by investing in transport networks, linking people to jobs.

Dermot Finch, Director of Centre for Cities said, “These figures show that it’s less ‘grim up north’. Cities like Warrington and Doncaster are on the up, but need to sustain this momentum over many years if they are going to catch up with the likes of York and Milton Keynes.”

He added that the UK’s biggest cities like Birmingham, Manchester and London are polarised within their own boundaries. Finch said that they need to address the deep-rooted wealth inequalities on their own patch, by moving beyond constructing shiny new buildings, if they are to continue to grow.

Cities Outlook 2008 looks back at the recent economic performance of UK cities as well as the main policy milestones of 2007. It also looks ahead to the prospects for UK cities in 2008 and beyond.

UK cities have benefited from a decade of strong growth and high public spending. They are now facing a number of headwinds, such as slower growth, tighter public spending, weaker consumer demand, and an uncertain housing market. Meanwhile, they are under ever-increasing pressure to provide more jobs, more homes and better transport.

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