Press Story

Unemployment in the North of England has risen by almost 100,000 in the last year, according to new analysis by the think-tank IPPR, released ahead of the latest national unemployment figures published by the Office of National Statistics today (Weds).

While the headline rate of national unemployment has fallen for the last three months, IPPR North analysis shows that every region other than the West Midlands and South West have experienced a rise in unemployment over the last year. Across the North of England, unemployment is 97,000 higher than last year.

IPPR analysis shows that long term-unemployment continues to rise, with the number of people out of work for more than a year up to 886,000, the highest since 1996.

IPPR analysis also shows that there are now 1.4 million people working part-time who say that they want a full-time job - more than at any time since records began in 1992.

The International Monetary Fund (IMF) has downgraded their forecast for UK economic growth, from to just 0.2 per cent in 2012, down from the 0.8 per cent it was expecting in April. The 0.6 per cent downgrade is the largest experienced by any advanced economy in the IMF's regular World Economic Outlook.

Kayte Lawton, IPPR Senior Research Fellow, said:

"The headline fall in unemployment last month was good news. But the bad news is that the number of people unemployed long-term is continuing to rise, with more people out of work for more than a year than at any time since the mid-1990s. Long-term unemployment can result in a 'scarring' effect, with people out of work for more than a year unable to secure future employment.

"Youth unemployment fell slightly last month, but with more than a million young people still out of work, there is still a long way to go. The Youth Contract job guarantee scheme is beginning to have an impact but the Government needs to go further and guarantee a job to everyone out of work for more than a year."

Katie Schmuecker, IPPR North Associate Director, said:

"Employment prospects in the north are particularly bleak, with 97,000 more people unemployed over the last year. The northern economy desperately needs greater local powers devolved from central government to unlock Northern potential and prevent it falling further behind. The double dip recession has hit the north particularly hard. Against the backdrop of the Scottish independence debates, the continued lack of growth and investment is taking on a new political significance."

Figures for the latest quarter show that unemployment fell in every UK region other than the North East, North West and Northern Ireland. But IPPR North analysis shows the number of unemployed people compared to a year ago is:

up 23 per cent in the North East (27,000 more people unemployed)
up 17 per cent in the North West (48,000 more people unemployed)
up 14 per cent in Wales (17,000 more people unemployed)
up 13 per cent in South East (33,000 more people unemployed)
up 9 per cent in East of England (18,000 more people unemployed)
up 8 per cent in London (29,000 more people unemployed)
up 7 per cent in Scotland (14,000 more people unemployed)
up 6 per cent in East Midlands (11,000 more people unemployed)
up 5 per cent in Yorkshire and Humber (11,000 more people unemployed)
down 6 per cent in the South West (10,000 fewer people unemployed)
down 5 per cent in West Midlands (12,000 fewer people unemployed)

Notes to Editors

The latest unemployment figures are available from:
http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/lms-july-2011/index.html

IPPR North's interim report of the Northern Economic Futures Commission is available from: http://ippr.org/publications/55/8992/northern-prosperity-is-national-prosperity-nefc-interim-report

IPPR's report - Jobs for the Future: The path back to full employment in the UK - is available from http://www.ippr.org/publications/55/7938/jobs-for-the-future-the-path-back-to-full-employment-in-the-uk

IPPR's report - 10 ways to promote growth - is available from http://bit.ly/IPPR8266

Contact

Richard Darlington, 07525 481 602, r.darlington@ippr.org