Economic gap between UK cities widens
The economic performance of cities throughout the country varies wildly and, according to new research, the gap between top performing cities and their less-resilient counterparts is widening in key areas - such as unemployment - as the private sector struggles to create enough jobs to fill the gap left by public sector redundancies.
According to the Centre for Cities' Cities Outlook 2012, some parts of the country are on distinctly different trajectories when it comes to economic recovery. The research, which has been supported by IBM and the Local Government Association (LGA), shows that Hull and Cambridge, for example, are diverging.
The gap between the number of jobseekers in each city rose from 3.2 per cent in 2008 to 6.1 per cent by the start of November 2011.
In Rochdale, meanwhile, there are six times as many claimants in the most economically deprived area than there are in the worst part of Cambridge.
The report shows that some cities will help keep the economic recovery on track - such as London, Edinburgh, Aberdeen, Milton Keynes and Cambridge. These towns will soak up their public sector job losses with a number of new business start-ups and private sector roles. this is because they have a higher proportion of skilled workers, business start-ups and are more innovative.
However, the picture is bleak for many towns and cities - including Swansea, Sunderland, Doncaster, Newport and Hull - which will all feel the full impact of the economic downturn because of their lower levels of workers in knowledge-based industries and business entrepreneurs.
Alexandra Jones, chief executive of Centre for Cities, said: "During 2012 cities should take the lead in shaping their local economies, and the government should give them the financial and political powers they need to make the right decisions for growth.
"Where cities face greater social and economic challenges, the government should offer support to help places adapt and respond to a rapidly changing global economy."
York is one such city responding rapidly to the changing economic landscape - but even this flagship city saw a 1.1 per cent increase in the number of people seeking jobseekers benefits.
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