Claimant counts for North East, Yorkshire and Humber, London, Scotland and Northern Ireland all higher than at their recession peaks

Responding to the latest UK unemployment statistics release today, think tank IPPR North is urging the Government to extend the 'youth contract' to guarantee everyone out of work for more than a year a job.

Analysis by IPPR North of today's unemployment figures shows:

• The number of unemployed in the North East is up 25% compared to a year ago
• The number of unemployed in the North West is up 16.9% compared to a year ago
• The unemployment rate is highest in the North East (12.0 per cent) and lowest in the South East (6.4 per cent)
• North West suffered .8% increase in unemployment
• The estimated rate of 12.0 per cent for the North East is the highest unemployment rate for any region since London in the 3 month period to August 1995
• The region with the largest increase in the unemployment rate on the previous period (June 2011 to August 2011) was the North East at 0.8 percentage points followed by Scotland and the North West, both at 0.7 percentage points. Wales, London and the South West all decreased 0.1 percentage points. The UK rate increased by 0.3 percentage points
• For the period July 2010 to June 2011 the highest unemployment rate in Great Britain was Middlesbrough at 15.1 per cent.

Ed Cox, Director of IPPR North said:

"Today's figures show that there must be more targeted help for struggling regions such as the North East, otherwise we are in real danger of betraying a whole generation of people who can't find work. These figures show one thing is clear: there must be a greater focus on the North if the UK economy is firing on all cylinders.

"The government's youth contract is a step in the right direction to help tackle the unemployment problem but more needs to be done to help the areas of the UK where people are really struggling to find work. The government should guarantee a job for everyone who has been unemployed for more than a year paid at the minimum wage, targeted at the worst affected areas first."

IPPR North analysis of ONS figures earlier this week found that in some areas there are twenty job seekers chasing every job vacancy. IPPR North argues that the Government should extend the new 'youth contract' to ensure a 'jobs guarantee' for everyone unemployed for more than a year in the areas hardest hit.

IPPR North recommends a five-point plan for jobs growth in the areas most at risk:

1. A targeted jobs guarantee: a job paid at the minimum wage or above, to anyone who has been unemployed and claiming JSA for more than 12 consecutive months targeted to the worst affected areas.

1. Innovation clusters: these should be in specific places and focus around renewable energy; advanced manufacturing: health and medical; nuclear; marine and ports.

1. Capital allowance concessions: government should introduce targeted tax incentives such as higher research and development tax credits and increased capital allowances for specific areas of investment and innovation.

1. Bring forwardcapital spending on infrastructure projects including the Northern Hub transport development.

1. A regional investment bank: focused on investment in innovation and small and medium-sized businesses.

Notes to editors:

Unemployment figures published today are available from:

http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/january-2012/index.html

IPPR North's analysis of areas with high unemployment and low vacancy rates:

http://www.ippr.org/press-releases/111/8518/up-to-twenty-job-seekers-chasing-every-vacancy-in-struggling-pockets-of-the-uk-

IPPR North analysis also found:

• The inactivity rate is highest in the North East (25.8 per cent) and lowest in the East of England (19.8 per cent)
• The claimant Count rate is highest in the North East (7.3 per cent) and lowest in the South East (3.3 per cent)
• Yorkshire and Humber suffered a .6% decrease in employment rate, the second largest in the country
• Women in the North East have an economic inactivity rate of 53.6%
• The employment rate is highest in the South East (74.5 per cent) and lowest in the North East (65.1 per cent)

Contact:

Tamsin Crimmens, 07800 742 262, 0191 233 9051, t.crimmens@ippr.org