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Up to twenty job seekers chasing every vacancy in struggling pockets of the UK

IPPR North, jobs, regional issues

Published date:  16 Jan 2012

IPPR North calls for a job guarantee in worst affected areas

Ahead of the latest unemployment figures published on Wednesday, IPPR North analysis of ONS figures has found that in some areas there are twenty job seekers chasing every job vacancy. IPPR North argues that the Government should extend the new ‘youth contract’ to ensure a ‘jobs guarantee’ for everyone unemployed for more than a year in the areas hardest hit.

The 10 worst affected areas are:

  • West Dunbartonshire has 20 job seekers to every vacancy
  • Clackmannanshire has 19 job seekers to every vacancy
  • East Ayrshire has 16 job seekers to every vacancy
  • Hartlepool has 16 job seekers to every vacancy
  • Eilean Siar has 16 job seekers to every vacancy
  • Blaenau Gwent has 15 job seekers to every vacancy
  • Lewisham has 14 job seekers to every vacancy
  • North Ayrshire has 14 job seekers to every vacancy
  • Isle of Wight has 13 job seekers to every vacancy
  • Gravesham has 12 job seekers to every vacancy

The IPPR North analysis shows that Northern urban areas are particularly badly affected, as is the West of Scotland, South Wales and some sea-side towns.

The most badly affected urban areas in the North include:

  • Hartlepool has 16 job seekers to every vacancy
  • Middlesbrough has 12 job seekers to every vacancy
  • South Tyneside has 11 job seeker to every vacancy
  • North Tyneside has 9 job seekers to every vacancy
  • Redcar and Cleveland has 9 job seekers to every vacancy
  • Sefton in Merseyside has 9 job seekers to every vacancy
  • Tameside in Greater Manchester has 8 job seekers to every vacancy
  • Bradford has 8 job seekers to every vacancy
  • Blackpool has 7 job seekers to every vacancy
  • Liverpool has 7 job seekers to every vacancy

The IPPR North analysis found that the national average of job seekers to job vacancies is four. Areas with one or fewer job seekers for each vacancy are Crawley, Cambridge, South Bucks, North Warwickshire, Harborough, Daventry, City of London.

Ed Cox, Director of IPPR North said:

“The government’s youth contract is a step in the right direction to help tackle the unemployment problem but more needs to be done to help the areas of the UK where people are really struggling to find work. The government should guarantee a job for everyone who has been unemployed for more than a year paid at the minimum wage, targeted at the worst affected areas first but then rolled out everywhere.”

IPPR North recommends a five-point plan for jobs growth in the areas most at risk:

  1. 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.
  1. Innovation clusters: these should be in specific places and focus around renewable energy; advanced manufacturing: health and medical; nuclear; marine and ports.
  1. 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.
  1. Bring forward capital spending on infrastructure projects including the Northern Hub transport development.
  1. A regional investment bank: focused on investment in innovation and small and medium-sized businesses.

Notes to editors:

IPPR analysis is based on the latest figures from the Office of National Statistics, they can be found here http://www.nomisweb.co.uk/

The full list of local authority areas is available from the IPPR press office.

Contact:

Tamsin Crimmens, 07800 742 262, 0191 233 9051, t.crimmens@ippr.org