Low-skill cities 'struggling more in the recession'
Cities which have not yet recovered from the last recession will find it harder to cope with the current economic climate, it has been claimed.
According to new research by the Work Foundation, areas such as Corby, Walsall and Swindon are more likely to suffer as they have a lower skills base compared to cities like York, Cambridge and Oxford which are coping well.
As a result, these regions have emerged with the fastest unemployment rates in recent years.
"People with higher skills levels are more resilient to economic shocks and more able to take advantage of opportunities that arise while those with fewer or non-transferable skills are much more vulnerable and have access to far fewer opportunities," the foundation's associate director Alexandra Jones commented.
She added that low-skilled cities struggle to attract knowledge-based industries, which are widely thought to characterise economic recovery, and as a result this effect is "magnified".
Last month, it was reported by the Office for National Statistics that UK unemployment had hit a 12-year high.
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Hi there,
This is something very close to my heart - i have always wondered why more structured investments is not pledged into those that need funding the most. Towns such as Oldham for example are really struggling and will continue to do so with out any solid leadership to drive much needed change.
Susie
I understand your concerns over this Susie and I appreciate that any regional economic policy ought to think about ethical choices. However, when policymakers look at how to spend limited resources to gain the most impact, they instinctively gravitate towards larger cities where the benefits to be had are likely to be greater. Oldham, for example, does not have the base necessary for sustained growth and development. Does this mean that Oldham et al ought to be neglected? No. The problem is that governments and other public authorities are making short term decisions that enable immediate gratification with regards to results and impact.
On the other hand, it is areas where there sometimes haven't been substantial and sustained investment that see the growth of entrepreneurialism, so all is not necessarily lost. We need to persuade government of the merits of long term projects to stimulate long term growth and rewards. Money well spent on infrastructure (e.g policing, education, health care) can often lead to an increased long term cultural shift.
Sean - CMI Ambassador.
Not surprised that York, Cambridge and Oxford are doing well - superb tourism honey pots - good educational institutions - a bulging middle class. What could go wrong.
Isn't the CMI based in Corby?
A recent news article suggests adding Newcastle to the list of potentially detrimentally affected should there be a downturn in public sector spending. Is there a link between the downturn of Britain's coal / steel /shipbuilding industries and the rise of public sector jobs which is now coming home to roost?
By the time I was socially aware, these industries had all but gone but I have a feeling that, certainly in Scotland, the areas affected by a downturn in these industries enjoyed an upturn in public sector jobs.
It's a catch 22 Susie, - there isn't much there so it doesn't attract investment. If you wanted to pump a lot if investment there isn't enough to support it.
The key question, being cynical of course, is will the Government win more votes investing in Oldham than elsewhere :-)