Many UK cities are continuing to feel the effects of the downturn and disparities between cities are growing, according to Cities Outlook 2012. However, despite the sombre national forecast, Centre for Cities’ annual health check of UK cities suggests that there will be glimmers of growth from some cities this year.
The national economy is struggling to create the numbers of private sector jobs needed to drive growth, or to balance job losses in the public sector. This pattern has played out very differently across UK cities.
Cities Outlook, published today and supported by IBM and the LGA, shows that the gap between cities is widening. In February 2008, the gap in the claimant count rate between Hull and Cambridge was 3.2 percentage points. By November 2011 this gap had widened to 6.1 percentage points. The report also highlights that there are six times more claimants in the most troubled neighbourhood in Rochdale than there are in the most troubled neighbourhood in Cambridge*.
The annual index illustrates how cities with less dynamic private sectors, such as Hull, Doncaster and Newport will find it more challenging to offset the combination of a weak national economy and the ongoing shrinkage of the public sector.
As cities respond to the challenges of high unemployment, a declining public sector and a reduction in real wages, those that bucked the trend and performed well against the odds, such as Edinburgh, Cambridge and London, have common traits. They have strong private sectors, high numbers of skilled residents and large numbers of ‘knowledge workers’ – people who work in professions like accountancy, law and finance.
Centre for Cities is calling on the Government to invest in those cities that are primed for growth. As these cities grow and create jobs they will drive the national recovery. Cities that are facing more entrenched challenges will require different solutions and support from Government to give residents the skills needed to find jobs and start businesses.
Read the full press release on the Centre for Cities website.
