News

Map of recession reveals worst-hit places

Wednesday, 15 April 2009

Stephen Overell

The analysis suggests that the local authority areas that have experienced the biggest jumps in the numbers claiming benefits are the ‘core cities’ of the North, the West Midlands and Scotland, and areas linked with traditional manufacturing and heavy industry that have suffered disproportionately in previous recessions.



In terms of the largest rises in total numbers of people claiming Job Seekers’ Allowance (JSA) comparing February 2008 with February 2009, the recession has impacted most upon large cities outside London. The ten worst-affected cities are: 

However, using the measure of the sharpest increases in their claimant rates (percentage of workforce claiming benefits in a local authority area comparing February 2008 with February 2009), the geography of unemployment looks different. The greatest moves in the claimant count appear to be concentrated in areas in the Midlands, North and North East of England and Wales.

Naomi Clayton, senior researcher at The Work Foundation, said: ‘Places in the eye of the storm as job losses mount are the UK’s core cities and areas associated with traditional manufacturing - places which in many cases had yet to recover fully from previous recessions before this one set in.



‘In terms of absolute numbers of new people signing on for JSA, it is the core cities of the north and midlands that are worst hit. Perhaps more revealing, though, are the council areas that have seen the sharpest upward movements in unemployment rates. These tell a story of a more traditional UK recession: some areas which had yet to experience the economic prosperity enjoyed by others are once more showing how vulnerable they are to downturns, especially if dependent on single employers.



‘Policymakers ignore how recessions play out locally at their peril. It is to be hoped that the forthcoming budget focuses much more attention on the large cities – Manchester, Leeds, Birmingham – that can drive the recovery, as well as recognising which areas need the most support to survive and prepare for better times.’



Notes to Editors

The figures are derived from the Office of National Statistics for England, Scotland and Wales.
Claimant count measures numbers claiming Job Seekers’ Allowance, but is not regarded as the best measure of unemployment.
The Geography of Unemployment: How the recession has affected different cities’ by Naomi Clayton is available from The Work Foundation. The paper was produced for The Work Foundation’s Ideopolis: City Leaders’ Network.
Naomi Clayton is available for interview.
Media calls to Stephen Overell at The Work Foundation on 0207 976 3507 or 07970 765251.