Thursday, 6 October 2011

The North/South divide reopens...


From the latest Manpower Employment Outlook Survey:

...a distinct line can be drawn to demarcate the division, running from the River Humber in the North East down to the Bristol Channel. North of the line, employers predicted negative hiring intentions of -2 per cent, while south of the line - including all of the South East of England - they predicted positive hiring intentions of +6 per cent.

And the factor driving this problem?

“Despite politics largely being held in London, most public sector workers are based in the North of England and Wales. The continuing public sector cuts are therefore particularly damaging to these areas that do not have such a vibrant private sector economy such as the South East. Furthermore over 32% of businesses are based in London and South East England, therefore naturally there is more employment.” 

After several decades of seeing the relocation of public sector employment, the stark truth is revealed. There simply isn't enough private activity outside the South East. And all the local enterprise partnerships, regional strategies and green growth agendas won't make a jot of difference. When 60% of the economy is public spending, private enterprise and initiative is squeezed out - that is the problem.


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