UK jobs market remains gloomy despite City boom, report warns

New report reveals a two-speed recovery in Britain’s economy with the capital booming while other parts of the country continue to struggle

The City’s dramatic revival means inner London is now the only part of the UK to have returned to pre-recession levels of job creation.

A TUC report to be published today reveals a two-speed recovery in Britain’s economy with the capital booming while other parts of the country continue to struggle.

The TUC Touchstone pamphlet – Equitable Full Employment: A Jobs Recover for All –paints a picture of a static labour market with people clinging grimly on to the jobs they have outside the capital.

It will say that job starts – the number of people starting a new job within a three-month period – are continuing to run at 20 per cent below pre-recession levels across the country as a whole and are still falling in many regions. Three in 10 new jobs are now also of a temporary nature, with fixed terms or contracts increasingly becoming the norm for new workers.

While employment rates have increased, one of the main factors sustaining them is the fact the levels of people leaving their existing jobs for new ones remains extremely low.

Outer London, the South-east and East have recovered since the crash but job starts are still 11 per cent, 16 per cent and 21 per cent below pre-recession levels.

The North-east outside Tyne & Wear and the West Midlands outside its metropolitan area show declines. In Merseyside and the North-west outside Greater Manchester, job starts are 30 per cent down on pre-recession levels.

Scotland, however, is recovering well with the exception of Strathclyde. In Yorkshire the recovery is patchy with the south and west outpacing the rest of the region.

The TUC says that job creation remains depressed across large areas of the country, especially in rural communities.

Young people are also suffering disproportionately. Hiring rates for 16-24 year olds, who traditionally have moved from unemployment into work at a far quicker rate than all other age groups, have declined considerably over the last 17 years. People in their late 20s and early 30s are now finding work just as quickly. 

The report urges targeted employment support programmes, such as a job guarantee for any young person out of work for at least six months, identifying low skills as a reason to provide more intensive employment support and establishing bodies in each industrial sector so government, unions and employers can work together to identify skills gaps and promote workplace standards and fair pay.

The Centre for Economic and Social Inclusion’s associate director Paul Bivand said: “Our concern is inclusion. It isn’t just our name. Employment growth should help close gaps in our society. We don’t want a rising tide to lift just the most buoyant and leave others behind. We want all areas and groups to benefit. We need to close gaps.

The TUC’s general secretary Frances O’Grady said: “Job creation is as important for people looking for work as it is for those already in work and looking to boost their incomes.

“It’s worrying that across huge swathes of the country – and particularly in rural areas – job creation levels remain depressed, and that where jobs are being created, far more are temporary positions than before the crash.

“We need to see far more high-quality jobs being created, not just in our cities but across the UK if we’re going to achieve full employment and a return to healthy pay rises.”

Start your day with The Independent, sign up for daily news emails
News
The two faces revealed by the ultraviolet light
newsScholars left shaken after shining ultraviolet light on 500-year-old Welsh manuscript
News
Rosamund Pike played Bond girld Miranda Frost, who died in Die Another Day (PA)
news
Arts and Entertainment
books
News
newsHow do you get your party leader to embrace a message and then stick to it? With people like this
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Marketing Manager - B2B, Corporate - City, London

£45000 - £50000 per annum + benefits : Ashdown Group: A highly successful, glo...

Neil Pavier: Commercial Analyst

£50,000 - £55,000: Neil Pavier: Are you a professionally qualified commercial ...

Loren Hughes: Financial Accountant

£45,000 - £55,000: Loren Hughes: Are you looking for a new opportunity that wi...

Sheridan Maine: Finance Analyst

Circa £45,000-£50,000 + benefits: Sheridan Maine: Are you a newly qualified ac...

Day In a Page

General Election 2015: The masterminds behind the scenes

The masterminds behind the election

How do you get your party leader to embrace a message and then stick to it? By employing these people
Machine Gun America: The amusement park where teenagers go to shoot a huge range of automatic weapons

Machine Gun America

The amusement park where teenagers go to shoot a huge range of automatic weapons
The ethics of pet food: Why are we are so selective in how we show animals our love?

The ethics of pet food

Why are we are so selective in how we show animals our love?
How Tansy Davies turned 9/11 into her opera 'Between Worlds'

How a composer turned 9/11 into her opera 'Between Worlds'

Tansy Davies makes her operatic debut with a work about the attack on the Twin Towers. Despite the topic, she says it is a life-affirming piece
11 best bedside tables

11 best bedside tables

It could be the first thing you see in the morning, so make it work for you. We find night stands, tables and cabinets to wake up to
Italy vs England player ratings: Did Andros Townsend's goal see him beat Harry Kane and Wayne Rooney to top marks?

Italy vs England player ratings

Did Townsend's goal see him beat Kane and Rooney to top marks?
Danny Higginbotham: An underdog's tale of making the most of it

An underdog's tale of making the most of it

Danny Higginbotham on being let go by Manchester United, annoying Gordon Strachan, utilising his talents to the full at Stoke and plunging into the world of analysis
Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police

Steve Bunce: Inside Boxing

Audley Harrison's abusers forget the debt he's due, but Errol Christie will always remember what he owes the police
No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat