Further jobs gloom on the way as north-south ‘chasm’ widens
Unemployment could reach 2.85m by the end of 2012. Picture: Ian Rutherford
JOB prospects are set to deteriorate in the coming months with more firms poised to make workers redundant, and warnings of a “worsening chasm” between the north and south in Britain, as unemployment slides closer to the three million mark.
A survey of 1,000 employers by the Chartered Institute of Personnel and Development (CIPD) shows almost a third of private sector firms plan redundancies in the coming months, up from one in four at the end of last year.
Employment prospects are brightening in London and the south east but they remain bleak in Scotland, Northern Ireland, Wales and the north of England.
The CIPD said the difference between the number of employers intending to hire new staff, and those warning of cuts, is at its worst level since the end of the last recession in 2009.
The findings reinforced its prediction that unemployment could reach 2.85m by the end of the year. The jobless total increased to 2.68m last month and is expected to rise again when new figures are published by the Office for National Statistics on Wednesday.
Six out of ten employers in the Labour Market Outlook survey by CIPD are not planning to create any new posts in the next three months. Where recruitment is expected, it is concentrated on management and executives (23 per cent) and sales and marketing (21 per cent).
A “net employment intentions” figure measures the difference between employers planning to increase staff levels and those who plan to cut.
The UK national average figure is -8. But in the south of England, the figure has improved to -1 from -4 in the past three months, while London has actually moved into positive territory with a +3.
Employment prospects in the north have fallen starkly to -20. The survey numbers were too small to pull out independent findings for Scotland, but they suggest the picture in the “Celtic fringe” of Northern Ireland, Scotland and Wales is even worse, said Gerwyn Davies, a CIPD policy adviser. Deteriorating job prospects reflect a slump in confidence in the private sector, which the government had hoped would create jobs to compensate for public sector cuts.
A “widening chasm” between north and south reflects the strength of the services sector for jobs in the south, said Mr Davies.
“Public sector and manufacturing play a greater role in the rest of the country and that’s why the figures are so much worse,” he said.
The strength of tourism and the financial services sector suggest some respite for cities like Edinburgh, he said.
“One of the surprising aspects is that despite the high-profile redundancies from RBS and the like, the number of people employed in the financial services sector has remained pretty constant, where as manufacturing, construction and retail have been very badly affected.”
David Lonsdale, assistant director for the Confederation of British Industry in Scotland, called on the coalition government to expand a scheme providing new firms outwith the south east with an exemption from employers’ national insurance contributions when they take on staff. He said: “It is crucial that the Chancellor puts measures to aid private sector investment and expansion at the very heart of his Budget next month.”
Email to a friend
Print this page- Family mourn death of Glasgow ‘fight’ schoolboy
- Rangers takeover: Duff & Phelps threaten legal action against BBC
- Today’s youth not fit to be employed, says car firm Arnold Clark
- Rangers administration: Fans fear Duff & Phelps claims could scare off Green
- Rangers takeover: triple penalty punishment enough, says Johnston
- Alistair Darling leads ‘No to independence’ fight over tea and biscuits
- Scottish independence: SNP flip-flops over Nato
- Scottish Independence: SNP ‘won’t be Yes campaign’s only voice’
- Scottish independence: Alex Salmond’s pledge to sign up 1m voters
- Today’s youth not fit to be employed, says car firm Arnold Clark
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Edinburgh
Sunday 27 May 2012
Today
Sunny
Temperature: 10 C to 22 C
Wind Speed: 12 mph
Wind direction: North east
Tomorrow
Sunny
Temperature: 9 C to 21 C
Wind Speed: 12 mph
Wind direction: North east
Comments
There are 32 comments to this article
Page 1 of 3
Anagach
Monday, February 13, 2012 at 04:31 PM31 Danielrober2 All you guys are doing is arguing over some dusty Constitutional Law books. ----------------------------------------------------------------------------------------------------- N
Danielrober2
Monday, February 13, 2012 at 04:28 PM# 28 SNP for me ......................... So are you bone idle lot going to spend the next two years or so asking others to do your work for you. It is your parties job, as the Devolved Government, to engage in job creation programs which every other level of government in Europe is working flat out on. All you guys are doing is arguing over some dusty Constitutional Law books. I ma not too bothered about separation, but goodness me I am terrified of another 4 years of inactivity by the SNP. The SNP truly are the laziest governmental party in Europe.
Anagach
Monday, February 13, 2012 at 04:05 PM17 .The Answer London has 54,000 workers who pay more in income tax than the 5.2 million residents of scotland...... ------------------------------------------------------------------------------------------------------ Pity that Scotland has had to pay £780m towards their Olympics, with all that tax washing around you think they could have paid for it themselves.
Anagach
Monday, February 13, 2012 at 04:03 PM17 The Answer .. except scotland 'is a basket case' ..... ----------------------------------------------------------------------------------------------------- Really so the Union really works well for Scotland then, having made it into a basket case. Well I guess that the Answer Independence must be the next answer.
SNP for me
Monday, February 13, 2012 at 02:10 PM@24 Tell you what, you set out your valid economic argument that supports the view that a government simply raising income tax (and with no other adjustments to the fiscal position) will create more jobs during a recession...
SNP for me
Monday, February 13, 2012 at 02:06 PM@17 and who really cares about your never ending list of statistics comparing London to Scotland. All they do is amplify the fact that as London has gotten richer and richer it has sucked the lifeblood from the regions and Scotland. Is this the union dividend you are hoping to convince us that we should maintain the status quo? laughable. I really dont care about the number of 5 star hotels, the number of millionaires or the number of rolls royces... I only care that Scotland should be allowed to govern itself for itself.
SNP for me
Monday, February 13, 2012 at 02:04 PM@25 ah, the old and tired "no-one is sure enough to invest here" nonsense. I suggest you look at just how much companies have invested in Scotland over the last few months and come back with a credible reason for maintaining the union, cos that one doesn't hold any water.
Mark Bishop
Monday, February 13, 2012 at 12:39 PMOh great. And we have just given away £2million to Malawi. Might have used that money to invest in this county and create a few more jobs, but that would be far too simple, wouldn't it? Coupled with all this dithering about the Referendum, no one is sure enough to invest here until it is resolved (if at all). The investment at Menie is on hold because of not sticking to the assurance that the coastline would not be obscured by a windfarm. No doubt we'll all be sitting here crying our eyes out as job after job melts away due to the terrible decisions our politicians are making as they flounder from one economic disaster to the next. Lobby your MP and make them accountable!!
Danielrober2
Monday, February 13, 2012 at 12:27 PM# 16 SNP for me ...................... At any point will the SNP use its tax raising powers to invest in ACTUAL NEW JOB CREATION? The Devolved Government has the power, it must at some point turn up and start working.
Willie Boy
Monday, February 13, 2012 at 11:35 AMAND MILIPEDE TOGETHER WITH HIS SCOTTISH MPS ALSO SUPPORT THE PRIVATE SECTOR HAVING A MORE IMPORTANT ROLE TO PLAY IN THE DELIVERY OF NHS CARE. WELL PRIVATISE THE NHS THEN I SAY. LIKE BANKERS, THE MORE MONEY PAID TO CORPORATE FAT CATS THE BETTER IT WILL BE. DUH!
Willie Boy
Monday, February 13, 2012 at 11:32 AMAh but Milipede has a plan whereby he will tax bankers bonuses to create more jobs. Increase bankers bonuses I say then. The more they get, the more jobs we create. Duh!
New Unionism
Monday, February 13, 2012 at 10:44 AMTo the people of Newcastle, Birmingham, Manchester, Liverpool - why do you let the South ruin your communities?
New Unionism
Monday, February 13, 2012 at 10:43 AMGreece today, the UK tomorrow, Scotland never with our budget surplus, the worlds fourth largest oil fields, most advanced oil services industry on the planet and no longer led by a corrupt Westminster.
New Unionism
Monday, February 13, 2012 at 10:42 AM17 30,000 of them are employed in the oil indusrty in the City.
New Unionism
Monday, February 13, 2012 at 10:41 AMJob losses in the North are a price worth paying for prosperity in the South. They are still doing it, your lives are worth less - vote independence and become the sixth wealthiest country on the planet. More Riots in England per chance?
Page 1 of 3
Your view
Please sign in to be able to comment on this story.