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Huge disparity in job creation between north and south – ONS report | Huge disparity in job creation between north and south – ONS report |
(35 minutes later) | |
The scale of the government’s challenge in creating a “northern powerhouse” has been highlighted by official figures that reveal a stark difference in job creation between London and the south-east and the rest of England since the recession. | |
Data from the Office for National Statistics (ONS) shows employment growth in northern England started three years later than in the southern regions and continues to be weaker. | |
George Osborne used his Conservative party conference speech on Monday to champion the northern powerhouse idea, using improved transport links and devolved economic powers to create a hub of fast-growing cities across the Pennines. | George Osborne used his Conservative party conference speech on Monday to champion the northern powerhouse idea, using improved transport links and devolved economic powers to create a hub of fast-growing cities across the Pennines. |
Related: How UK cities compare for population, jobs, new businesses and house prices | Related: How UK cities compare for population, jobs, new businesses and house prices |
The chancellor said in his March budget that the north had grown faster than the south over the previous year and the region with employment rising at the quickest rate had been the north-west. | The chancellor said in his March budget that the north had grown faster than the south over the previous year and the region with employment rising at the quickest rate had been the north-west. |
But the figures from the ONS Business Register and Employment Survey paint a less upbeat picture. They show that employee numbers began to rise in the south in 2009, the year the economy started to emerge from its longest and deepest post-second world war recession. In the north, by contrast, employment continued falling for another three years. | But the figures from the ONS Business Register and Employment Survey paint a less upbeat picture. They show that employee numbers began to rise in the south in 2009, the year the economy started to emerge from its longest and deepest post-second world war recession. In the north, by contrast, employment continued falling for another three years. |
The ONS said: “Northern England regions collectively have grown below the UK average in both the 2009-2014 period (growing at 2.2%) and the 2013-2014 period (growing at 2.7%). This is in stark contrast to the southern regions, which collectively have grown by 7.5% during the 2009-2014 period and 3.5% during the 2013-2014 period.” | |
The ONS figures show employment growth in the UK as a whole was 4.8% a year on average from 2009-14, and 3.1% between 2013 and 2014. | The ONS figures show employment growth in the UK as a whole was 4.8% a year on average from 2009-14, and 3.1% between 2013 and 2014. |
London has been the jobs motor of the economy since the recession, with employment up more than 14%. The ONS said that even excluding London, jobs growth had been faster in the south than the north. | London has been the jobs motor of the economy since the recession, with employment up more than 14%. The ONS said that even excluding London, jobs growth had been faster in the south than the north. |
“Much of the growth in the southern regions has been in London during 2009-2014”, the ONS said. “Growth in the southern regions outside London is still higher than that seen in the north over this period (4.2%).” | “Much of the growth in the southern regions has been in London during 2009-2014”, the ONS said. “Growth in the southern regions outside London is still higher than that seen in the north over this period (4.2%).” |
Away from London, the UK city with the next fastest increase in employment since 2009 has been Birmingham, with Bristol third on the ONS list. Cardiff, Sheffield and Liverpool have all seen employment grow by less than 2%, but the weakest performance has been in Glasgow, where there were still fewer jobs in 2014 than in 2009. | Away from London, the UK city with the next fastest increase in employment since 2009 has been Birmingham, with Bristol third on the ONS list. Cardiff, Sheffield and Liverpool have all seen employment grow by less than 2%, but the weakest performance has been in Glasgow, where there were still fewer jobs in 2014 than in 2009. |
One possible cause of the weaker employment growth in the northern regions is that they remain far more reliant on manufacturing, where output is still below the levels reached before the economy started its descent into recession in early 2008. Manufacturing is the second biggest source of employment, after health, in the north, but only the seventh biggest in the south, the ONS said. | One possible cause of the weaker employment growth in the northern regions is that they remain far more reliant on manufacturing, where output is still below the levels reached before the economy started its descent into recession in early 2008. Manufacturing is the second biggest source of employment, after health, in the north, but only the seventh biggest in the south, the ONS said. |
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