City hotspots and blackspots revealed
8 June, 2010
London, Bristol and Manchester created the most private sector jobs
Falling numbers of private sector jobs will make life for pubs, restaurants and other businesses much harder in some UK cities than in others where job creation is pushing ahead, a new report warns.
The ‘Private Sector Cities’ study by the Centre for Cities research agency looks at ways to fuel jobs and bolster economic development and spending as the country recovers from recession. It also identifies employment hotspots and blackspots—revealing the cities that will see more spend in the next few years and those that will struggle to sustain businesses.
The report’s authors found that London, Bristol and Manchester created the most private sector jobs over a 10-year period, making them among the more fertile areas for restaurants and other eating or drinking establishments as they seek to expand.
Birmingham, Stoke and Nottingham were meanwhile among those to lose the most jobs. “Through no fault of their own, many struggling city economies... are no longer capable of generating enough private sector jobs for the number of people living in them,” the authors claim.
Milton Keynes, Cambridge, Reading and Crawley are among other cities on the report’s ‘buoyant’ list, while ‘struggling’ locations include Bolton, Barnsley, Middlesbrough and Hull.
The report notes a marked north-south divide when it comes to job creation. “For every private sector job generated in the North and Midlands between 1998 and 2008, 10 were created in London and the South.” But it also points out that some cities in the north—including Preston, Wakefield and Newcastle—had significantly increased their private sector workforces in that time.
"More buoyant cities - such as Reading and Brighton - have been creating thousands of new jobs in the private sector, but need to be expanded further to help businesses and workers take advantage of the opportunities being generated," the report says.
"Together, national and local leaders should adopt a new approach to economic development across the country that focuses on helping cities and their residents adjust to long-term economic change. This shift in thinking will have wide ranging implications, including significant expansion of buoyant cities that are experiencing strong private sector growth and more realistic development of struggling cities that are not creating enough jobs for their workforces,: it adds.
The report hails restaurants as among the most important businesses in the drive to create jobs and support local economies. “In the private sector [between 1998 and 2008], one of the biggest drivers of growth… in buoyant cities in particular [were] hotels and restaurants.”
Centre for Cities calls on the government to devolve more power and incentives to local leaders to kickstart the economy, and to focus on expanding buoyant cities while scaling back expectations of struggling ones.
“Together, national and local leaders should adopt a new approach to economic development across the country that focuses on helping cities and their residents adjust to long-term economic change.” It also urges a relaxation of planning rules on both brown and greenfield sites to help businesses grow.
The full report can be downloaded from the Centre for Cities website.