New report highlights vulnerable cities for job losses

A new study has outlined which cities are set to lose out as a result of public sector job losses.

The report by the Centre for Cities shows that cities like Swansea, Newcastle and Ipswich are currently too dependent on the public sector for jobs and are vulnerable to job losses in a public spending squeeze.

A large public service workforce, coupled with a high number of medium to low-skilled positions mean that these cities are particularly vulnerable to job losses - highlighting the need for management skills.

In the boom years, public sector expansion boosted the economies of UK cities, with 69 percent of the 1.2 million jobs added to city economies between 1998 and 2007 coming from this area.

The report highlights how some cities will be exposed to further job losses in a public spending crunch from 2011 onwards.

Centre for Cities estimates that up to 290,000 public sector positions across the UK could be lost by 2014.

Figures from the Office for National Statistics show that the number of people in employment was 29 million in the three months to May 2009, down 269,000 from the three months to February 2009 and down 543,000 on a year earlier.